I gave this stock a pass in the past because preliminary investigation suggests its a contract manufacturer of IMFL brands of other well established players. But it again came on radar with the recent entry of Dolly Khanna in the company. Why would the Khanna’s be interested in a contract manufacturer? Below video of the management might change perception:
=Business segments - (a) Mfg of ENA, (b) Contract Mfg for USL, Pernord etc, ( c) Mfg of own premium IMFL brands. The break up was not revealed.
=Present capacity 31.4 Million Lit
=Planned expansion 90 Million Lit
=In the first phase, capacity will be increased to 45 Million Lit by June this year
=Next phase will start after a year or so, post stabilization of newly expanded capacity
=Turnover is stagnant at ~ Rs.300 Cr since last 3 years. But the TO for 9M Dec17 is 247 Cr.
=They have taken franchise business of USL for MP (mfg and distribution of premium brands of USL). That will add about 100Cr extra in FY19. Also the increased capacity will start contributing from current FY.
=Capacity utilization from last 3 yrs ~ 100%. Projected to close FY19 with sales of 450 Cr.