Financial Results & Limited Review for June 30, 2013
Link: Click Here
Outcome of AGM
Link: Click Here
Extremely poor numbers reported by Cravatex, which exactly justified the fall in stock price from 400 odd levels to 250.
Revenues have gone down from 39.71 Cr to 35.40 Cr. We cant blame rupee for decline in revenues. If it could just have been a matter of less profit, then it would still have been acceptable. But decline in revenues is a serious reason to worry.
Net Profit has gone down severely from 1.76 Cr to just 0.78 Cr. Because of such profits, EPS has gone down from 6.82 to 3.03.
My View:
Doesn't look like there is any point in investing in Cravatex at this moment. As I mentioned earlier, decline in revenues this time, is big reason to worry. This means that either they are not able to compete in this market or there is a serious decline in demand of such fitness and sporting products because of depression. Once again, we have a case similar to Photoquip. It will only be wise on our side, to invest in these companies, once they start moving up. For those who are already holding, can wait for some more quarter to see if business improves, or if rupee becomes stronger, to see some upside in this counter.
No comments:
Post a Comment