Dai-Ichi Karkaria Limited


(Dhiraj Dave) #102

Poor results. While loss can be explained by higher fixed cost of Depreciation and interest on Dahej plant, fail to understand decline in Sales. Probably, shifting of plant from Pune to Dahej may have adversely affected the sales but no communication from management on result/press release with consistent deterioation in performace is concern for shareholder.

Discl: I continue to own my partial holding as of now. (afterly liquiditng nearly 70% of my holding couple of years back). My view may be biased due to my investment.


(aklodha) #104

Yup you are correct shifting of plant have adversly affected the sales …i feel 5-6 months more to go before we can see things moving back on track


(Dhiraj Dave) #105

Bad newsflow does not appear to end for Dai Ichi. After poor results, Now Crisil has classified them as Non-cooperative borrower due to not providing information. While my impression about management being good and trustworthy, such incidence raise major concern about conduct of business. Even if they intend to move out and get rating from other agency, the exit shall be respectful in my opinion.

https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Dai_Ichi_Karkaria_Limited_November_14_2018_RR.html

Discl: I still hold my position and critically evaluating situation. Investor shall do their own due diligence before making any investment.


(phreak) #106

Lower crude should be good for dai-ichi or is there more to it?


(Dhiraj Dave) #107

In my limited understanding, Lower crude price are not overall good. On positive side, raw material cost of the company would be lower as it serve input to some products. However, bigger negative side is nearly 40-50% of the company sales is dependent on Oil and crude exploration business which has generally negative sentiment when crude price decline. In addition to standalone, nearly 100% of Nalco JV is has Oil exploration business in India whose profitability is directly linked to crude price. While not having any linearity and objective ways to prove my hypothisis, it is more based on my subjective evaluation.

Discl: I continue to hold Dai Ichi shares and my view may be biased. Investor shall take decision after doing its own due diligence.


(Dhiraj Dave) #108

Rating for Dai Ichi downgraded to BB+ from Crisil. Fund based limit uitisation over last 12 months is positive in my opinion.
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Dai_Ichi_Karkaria_Limited_January_03_2019_RR.html

Discl: I continue to hold Dai Ichi share and my view may be biased. Investor shall do his her own due diligence before making any investment decision.


(hazariwalapu) #109

above statement makes a perfect observation of the business going forward.

As they claim they got best technology, will they get any kind of pricing power for their chemicals? and how sticky is their business ?

Who are competitors of this company?
Thanks for updating Dhiraj

Prashant


(Aashav Patel) #110

Yet another Q with -ve OPM

What is the exact problem they are facing? Dahej should already have been operational since long back, during AGM period they were running final trials! Even if Kasarwadi plant don’t contribute, shouldn’t dahej plant bring at least topline growth? Even Gross margins have been falling.


(Mukesh Tolani) #111

Sales have been steadily on the decline.
Surely a matter of serious concern.
The management should put in efforts to explain the cause of reduction in top-line & also the future prospects in the coming quarters.
I think we should meet / write to the management regarding it.