Financial Results & Limited Review for Sept 30, 2013
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Outcome of Board Meeting (approves Delisting Proposal)
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There is nothing more left to say in this counter, as almost none was interested to have a look at results today. Only a sparkle, in form of news that mentioned that the board is planning to delist Ricoh India from BSE on Friday, was enough for the stock to hit 20% upper circuit today.
Ricoh India said that the main objectives of the delisting is to obtain full ownership, which will provide the promoter group with increased operational flexibility to support the company's business and to provide an exit opportunity to the public shareholders.
In all of these, one should not forget the fact that, the company came out with very strong set of numbers today.
Revenues stood at 296.22 Cr Vs 159.68 Cr YoY, which means the sales grew by almost 86%.
Compared to the loss of 6.23 Cr last year, the company managed to post a meager profit of 96 Lacs, but still thats an achievement considering the fact that, they suffered a huge 43.75 Cr loss due to rupee depreciation, which was nil last year.
Considering that in profit, the company would have reported an EPS of close 10-11 vs -1.57 last year.
But due to that loss, the EPS stands at 0.01, which is still good when compared with -1.57 last year.
Here, I am not mentioning anything about the target price and all, because now, the prices wont react to current numbers or future speculations anymore. The news about the delisting date and price, would decide the height the upside left in this counter.
Again it was locked in the Upper Circuit of 20% at 85.70 with just 20k shares traded. There were buyers for more than 25 lakh shares but no sellers. It may start trading in three figures soon.
ReplyDeleteVery low volumes traded towards the end, was a sure indication, that it will start in upper circuit tomorrow. Then we will have to see, how many more pending orders are there, and how many shares are getting sold in a day.
ReplyDeleteThe circuit filter will change to 10% now, as it has hit 20% upper circuit in past 2 days, so atleast initially, we will see 93-94 levels in the morning with 10% upper circuit....
Also, wanted to ask you if you did check the comment on Photoquip in the post of Gulshan Polyols? Whats your view on that? Please share.
I read it with interest. My interest in Photoquip is 100% intact. In fact, I have added something in the last three months. Corvi doing Rs.20 crores in a year is something good. Now they have incurred initial sunk cost on the product. Last quarter losses were just 40 lakhs. Once the products pick up it should generate profits. I am not sure about their old businesses i.e.flashlight, etc. Could you please take check-up whether they are supplying to Swiss guys. It could be a multi-bagger in the next three years provided promoters want it.
ReplyDeleteI am trying my best to get that info, but not succeeding... :-(
ReplyDeleteLets wait for this quarter numbers and then try to find out....
In the last three days since the announcement of listing around 1.03 lakh shares have been traded and all at Upper Circuit of the day. Today there were buying orders pending for more than 7 lakh shares. I hope tomorrow it again opens at the upper circuit only @ 103.75. However during the day circuit may open depending upon volumes !!!
ReplyDeleteI also feel the same. The vols are expected to be more than 1 lakh tomorrow, and that certainly would create panic among few more, and thats how, circuit might open...
ReplyDeleteBut I was watching the trades very carefully today. If you have observed, there were no major order executed today at one go. I mean, most of the transactions were of 100-1000 shares, which clearly indicates that only retail investors are selling, and that's quite obvious, because of several reasons.
Once institutional and other big investors will start selling, that is when circuit will open.
Btw, is there any info on date by Ricoh India for its delisting plans?
It should take around 75-90 days for actual date of opening of tender offer !!!
ReplyDeleteAverage trade volume per transaction for the last three days is 500, 300 and 300 on a very rough calculation !!!!
ReplyDeleteRobust volumes on 14th November with 5.36 lakhs and all traded at Upper Circuit !!!! However, delivered volumes are 5.03 lakh shares only, WHY ?
ReplyDeleteHey totalview,
ReplyDeleteIf you have observed in BSEIndia.com, you can see that now, Ricoh India is shifted from T group to B group, hence intraday trades are possible now on Ricoh India.
Earlier, it wasn't when in T2T segment...
Hence the rest of the volumes could have been the result of intra-day sell orders placed at 103.75 in the morning and squared off later at the same price....
The pending buy orders at upper circuit in the morning were around 4.8L, and volumes till the end of day were in excess of 5L, hence, new buyers would have came on later.....
And among those new buyers, few would have been the ones who placed the intraday sell order in the morning, and then placed the square off order at same price, as they would thought that circuit doesn't look like breaking now....
That's the only possible scenario I could think of....
Its difficult to explain in written form, hence let me know if you didn't get, I will try to simplify myself more.... :-)
You are right ! I just wanted to convey that at the same price i.e.@ 103.75 traders bought and sold or sold and bought and ended up loosing on brokerage and expenses !! :-) But why change of decision and that too at the same price?
ReplyDeleteFrankly speaking, out of those intra-day traders, atleast 75%, wont even be knowing anything about growth and fundamentals of Ricoh India...
ReplyDeleteThe trade was just because, they would have thought that Ricoh India is hitting upper circuits since last 4 days, so lets give it a try today, if circuit opens, we might make good money. Thats it..
What do you think?
You r right !!!
ReplyDelete