Financial Results & Auditors Report for March 31, 2013 (Audited)
Link: Click Here
My Views:
After Thangamayil, this is second company in our list that has reported loss in this quarter.
Somewhere in the back of my mind, this was expected. As per the mail I got from Photoquip's Management, they started sales of CORVI products from 14th Jan 2013. Every new business has its own difficulties while starting.
Marketing and advertising expense is probably highest during the initial phase of new business.
Lets talk about the numbers.
Revenues have grown 31% YoY, and have grown 16% QoQ.
Company has reported heavy loss in this quarter mainly due to advertising and marketing expense of their new venture CORVI, as it seems. The actual loss reported for this quarter is 5.14 Crs, due to which the EPS for the quarter comes out to be -10.
As far as I feel, there is nothing much to worry, inspite of such numbers.
Promoters have been accumulating 5% shares year after year. Even when they did not had good time last year, they were not able to accumulate shares from open market on daily basis, but still, on the last day of FY13, they accumulated 4% shares on a single day to complete their quota of 5% for FY13.
If one is looking at the order placement daily in last few days, one can see that at the start of every session, there is an buy order of 1000 shares at 41 Rs. Whether that order gets executed or not, one can again see that same order placed at the start of next session. There is a very high probability that this again could be the act of proxies who then transfer all the shares to the name of promoters whenever required.
Since past 3 years, money invested in Photoquip is behaving like money kept in locker of Bank. It is still as it is. The price of Photoquip in past 3 years has neither appreciated nor depreciated from 40 levels on an average.
But still I am very much hopeful, because of company's innovations and future plans.
We dont know how much more time is needed for company to make its new business stable, hence we are not in a position to set any targets for this counter.
Difficult to make money on this counter even on long term basis !!! Pro moters are very cunning and dishonest to the core. Look at the shareholding pattern for the last ten years. They have actively played in this market. First they have made money by unloading shares in the market. Later on, when they saw some prospects in the business they started accumulating through creeping acquisition. Now when they are not getting shares from the market, they have booked heavy losses in a single quarter. Just remember, even if losses are genuine, it could not have happened in a single quarter. In a nutshell, they are cheating the retail shareholders. When the going was good they never shared a single penny with retail shareholders rather they kept on drawing huge remuneration, keeping in view the size of the business, through father and duo-son !!!!
ReplyDeleteYou have a very valid point there....but only reason which still keeps me hanging with this company is the innovations and future plans of the company, as I said earlier.
ReplyDeleteThere is no doubt in points that you have mentioned, but on positive side, we have examples like TTK Prestige and Relaxo Footwears, who stayed at the same price for 5-6 years, and today they have already became 30-40x from those levels....
Just wanted to know, if you have lost complete faith in the company (because of promoters) or do you still have something invested? :)
My holding is intact ! But every time I am analysing the promoters' actions in the past and till today, it's giving a very bad and bitter taste being invested. You may not loose money on the counter but opportunity and interest cost related losses cannot be ruled out !!!! March 2013 quarter has given a very big jolt and forced analysing the past actions e.g. 24X365 interest in the scrip price movement just to keep promoters' interest upper most is scaring.....
ReplyDeleteIn FY2013-14 till 7th June 2013 45,000 shares were traded and delivered on BSE !!!! I believe that these shares either have been gobbled by promoters or soo me might have been used in trading to obtain quotes and liquidity so that others can be induced to sell(SURRENDER) their shares at CMP !!!! No doubt promoters have been completely successful in keeping share price under control and at the same time retail shareholders have surrendered their shares looking to the non-sharing of profits and now disastrous results !!!! Best way to counter the promoters will be to offer quotes to buy at CMP or offering a little better quotes !!!! Floating stock is limited !!!! June 2013 shareholding pattern will further clear and confirm this aspect !!!!
ReplyDeleteHere is something we can look at to get some latest updates...
ReplyDeletehttps://www.facebook.com/photoquip?fref=ts
These share definitely might have been taken up by promoter or their so called proxies..... because when you look at the buy-sell orders placed on this counter, it doesn't seem that it could be retail investors.
ReplyDeleteJune SHP might not reveal this, if those shares have been taken up by proxies.
Anyways, facebook page of Photoquip has got some good videos...
But what surprises me that most, is that why there is no info related to CORVI, neither on facebook page, nor their official website.
I know we have a separate website for CORVI , but still, there should be some pointers to it.
For undisclosed reasons, ab initio, they have been hiding this fact atleast from the general public !!!! May be they want to develop Corvi as a separate brand !!!!
ReplyDeletePhotoquip promoters are unable to purchase shares from the market ! They have become too greedy ! Uptil now in the current quarter ending June 2013 around 46000 shares have been traded and delivered ! A good quantity out of which is circular trading and the average price is around 41 !!! but now they want to purchase below 40 !!! But hardly there are sellers below 40 !!! Let us see what further strategy they have up in arms to snatch the shares from retail shareholders !
ReplyDeleteEven I am observing the same thing in last few days..... the major sellers are observed around 44-45 levels, at the start of every new session with a sell order of about 2000-5000 shares, but dont think promoters want shares at that price now...
ReplyDeleteI strongly feel, that we will have to be very careful now.... as such moves from promoters could be dangerous....
Earlier I mentioned about Essar Steel, I doubt if its another Essar Steel in the making....
I will try to put a mail to management and get their views on this soon.....
Management seems to have added 2 new awards they received..... as I think, there was only 1 award displayed on this page... not sure though..
ReplyDeletehttp://www.corvi.com/awards.html
Any latest updates on Photoquip? Should one hold or get out?
ReplyDelete