Tax rate may be low as Indian govt may have lower tax rates for IP licensing revenues. Can anyone from CA community comment on this?
Also here is a research update from moneycontrol: July 2017
A Blackrock fund recently acquired shares of the company but at the same time, the promoters did some selling: June 2017
(Disclosure: long)
Funny aspect in the investor presentation is the distribution channel, they have captured as image of Snapdeal with their product n on that product highlighted is discontinued.
The presentation claims to have distribution network in all states of south India. I am from Blore n not able to find their products in Blore. Been looking for sometime now.
Disc. I have been invested in arrow since 2014. I believe their IP has significant value considering there are only about handful of companies worldwide with similar technology.
Hi,
In my opinion, Klenz Pro has only been recently kicked off by the company. It is an attempt by the company to complete the value chain from being a mere supplier of films to becoming the provider of a range of end-to-end cleaning solutions. The company’s focus is on targeting the cleaning industry which is growing at a fast clip in India.
Under its ”Klenz Pro” brand Arrow provides eco labelled cleaning and hygiene chemicals for institutional clients in India, including hospitals, corporates, facilities management companies, restaurants etc. This brand is a result of a strategic alliance between Arrow and Proquima, Spain which has over 50 years of experience in manufacturing cleaning and hygiene chemicals. With a suite of over 900 products, Proquima is one of the leading manufacturers of cleaning and hygiene chemicals in Europe.
As per the agreement, Arrow markets and distributes Proquimia’s products in India under the Klenz Pro brand. In addition, Arrow has the right of first refusal for 15 Asian countries. These superior quality products are in compliance with European Union’s 2017 norms, ensure precise dosages of chemicals that help users reduce wastage, increase accountability and reduce logistic and transport cost. Currently, the brand has over 50 products under its belt and plans to expand it to 70 products by FY19E. Over the last two years, Arrow built a strong distribution network spread across ten states and is also planning to expand its presence in nearby countries like Sri Lanka, Maldives, Nepal and Bangladesh.
Arrow Greentech - Initiating Coverage - Centrum.pdf (965.4 KB)
Excellent report. Very detailed, Covering all aspects. The subject line of this topic should be changed. Many are tracking now !
The Balances with Banks in Current Accounts in subsidiary companies have been steadily increasing and lying idle - Rs 10 cr on 31-3-2014, Rs 24 cr on 31-3-2015, Rs 36 cr on 31-3-2016 and Rs 43 cr on 31-3-2017. Keeping funds idle for such a long time and not bringing them back to India certainly throws up another red flag. For a company with a balance sheet size of Rs 60 cr, that is a lot of money to be kept idle.
I plan to meet the top management of the company soon , please pass on any particular questions you have .
I see some of the serious red flags pointed in this thread in last couple of years and then I see DSP BlackRock buying 4.71 lakh shares. Not entirely sure what to make of it but when in doubt, give it a pass. Some of the red flags in this remind me of my research on FiberWeb.
The company has informed the exchange about receipt of patent on high security paper and its process of manufacture.can we discuss about the size of opportunity of this development by the company?
I am tracking this company with expectation of binary outcome, either mutplied by1 or 0. The company has patents which has filed across the countries (including EU/US/UK) and Australia/India. There are two major concerns for me is who is main source for the company which resulted in such good patent filing. I am personally not got that answer. The second point is entry barrier to business and potential opportunity for the business. The company import PVA which is raw material for water solluable films. It probably has its unique way to convert PVA in water solluable films and various application of same across the segment.
This is very small allocation for me and it is very risky investment at current valuation. Investor shall take very high due diligence for this company before investing as there might be probabilty of loss of capital in such risky proposition.
I have attended AGM of the company and used there products samples. I find that water solluable film melting in couple of minutes which meet the requirement in my opinion.
However, the future growth would come by commericalisation of patent which company has. In past it commericialise couple of patent through UK subsidiary which resulted significant jump on profit over last 2-3 years. Whether same was one time or recurring is yet to be seen.
My past experience with investing in such high growth potential company with relatively new managment has been not encouraging. In 2000, I invested in the company called Hindustan Agri-Genetic which was promoted by ex-employee of Hindustan Lever was working in developing new seeds. My average purchase price was around 23 which is noe delisted for penal reason. (I still hold the share in physical).
http://www.bseindia.com/stock-share-price/hindustan-agrigenetics-ltd/hindust/519574/
My second experience was Nath Seeds. The company has changed its hand over period from Nath Seeds to Nath Biogene (with current price of 488 per share). I entered in this company in Jan 2000 at Rs 46 and existed with loss and sold share at Rs 11 in August 2003. Nath Seed was subsequently split on three companies with minority shareholder getting share of two new companies (Nath biogene and Agritech India), the process toook more than decade with Nath Seed’s share was not being traded during 2004-2011 period.
The reasons to discuss these experiences is to make investor aware about risk involved in such high hope trades and also my extremely poor treck record to benefit from such opportunities.
Discl: I have less than 1% portoflio allocation in the company and invested for more than 10 month. I am not SEBI registered advisor and investor shall do its own due diligence.
Thanks @Dhiraj for sharing your experience.IN my opinion, the companies surviving and coming back like Nath seeds are not many.
I am expecting that some members evaluate the following in respect of Arrow Greentech based on its filed IP:
a) Demand (Indian+Global) for high security paper.The company says that its paper could be used even for currency notes
b) Whether the paper for currency notes is being imported
C) Are there other manufacturers in India of the same?
Regards
Disc:I have a small investment purchased a month back based on company details available on internet and as a follow up a MF buying
There are few other bidders for currency notes. If you track the tenders on the RBI website you will get a list.
Today i dumped this stock, have been holding for more than 2 years , despite of all the magical returns am not able to see the future in scalability and exploitation of patents.
I talked to their sales team and asked for dealership/franchise for their products in July 2017, despite of assurance of replying they didnt reply to my mails
I had also tried getting distribution rights for some of its products for b2c sales. Despite promise to revert, they never did. Looks like they are not interested in doing real business. I also dumped it today.
The latest SHP suggests that Sundaram has also picked up some stake last quarter.
But Param Capital has sold. Rather then looking at who has bought and who sold, (although important news), it would make sense if we can understand that at a given risk profile, valuation and prospect whether it make good investment for individual investor.
Can this be a major disruption for this company’s unique patent Water Soluble Film (WSF)?
Just got my veggies in a truegreen bag from my local Reliance Sahakari Bhandar.
The Non-plastic bag says: “This truegreen compostable bag gets converted into invaluable compost/manure under composting conditions which helps improve quality of the soil.”
Company website: http://www.truegreen.in
Product List: http://truegreen.in/index.php?option=com_phocagallery&view=category&id=3:products&Itemid=0
Something I have never seen before - negative revenues in Q4 for this company (reversal of prior period revenues owing to non-acceptance by customer). No wonder the stock is down lower circuit!
Where you got this info ? Its not updated on BSE site
Check notes to results
