Is the above info from the annual reports?
They are very small and not listed companies
Thanks for the link.
But there are more Indian companies on the list other than dynemic and vidhi?
Koel colour pvt ltd
Neelikon food dyes
There has been off-market purchases of late by promoters. Could it be that declassified promoters transferring their shares to existing promoters?
It feel from a high of 100 in dec 2014 and reached a low of 39 in this year. Does any one know the reason for this huge fall?
Please check the complete thread. U will find the reasons. And also, the
explanations for them.
Looking at the Shareholding pattern ending Sep 30, seems there are certain discrepancies.
Mr. B.K Patel’s stake has gone upto 10.65 from 10.57 from off-market purchase on 29th Sep.
However in the Shareholding pattern it still shows as 10.57%. Similar discrepancies in other promoter holdings.
Further, it seems Mr. D.N Patel who was first moved from promoter to public category. Now his stake has gone down from 3.5 to 2.7 in the Sep quarter.
Not able to understand the above.
Discl: Not invested
It is highly likely that D.N. Patel’s stake is being acquired by remaining promoters via off-Market transfers. I think it’s a positive as existing promoters seem confident of the future.
But overall stake including promoters and DN patel between June and Sep 2015 has gone down
Also I am not sure about the pricing power of its products. No break-up available between different products. Vidhi operates in a niche area with established client relationship. Dynemic can no where be a proxy for Vidhi. The new capacity would come only after approvals pending in 2016 which is yet to come and not guaranteed, also capex cycle takes its own time. Considering the above factors for a micro cap, difficult to pay more than 5-6 PE level.
I think it is important to look at current promoter holding. An ex-promoter is likely to sell. Look at Force Motors. What price did the Bajaj’s exit? Just an example, that ex-promoters, and that too family or related members generally sell their holdings. In this case, quiet a bit has been acquired by remaining promoters. I take it as a positive. It’s upto each individual to make their own inference .
Do understand that I am not soliciting advice to buy. Stock is for discussion and one is welcome to invest or not as per one’s judgement. If one finds other stocks better then follow your conviction.
btw, I am happy with my investment which has given decent returns from levels at which thread was initiated.
I agree @jitenp. And thats exactly my point. Your price point was great, congrats for that but current price point to invest, in my view its quite high given the reasoning in my previous post.
This quater result is very bad and today also stock hammered. Please suggest to hold or exist from this stock.
Yes. Results were bad and stock had corrected. Today it fell in sympathy to peer Vidhi’s poor results. I would stay put. But each make their own choice.
Prices of food colours, where both Dynamic and Vidhi operate have crashed significantly. More importantly, there are no signs of price stabilisation leave alone recovery. The buy sell decision is of course your own.
Discl: No holdings and no intention of buying.
@rapidriser Could you please share the source of information? Where can I check prevalent prices of food colours?
Would appreciate if you can share more detail…
My statement is based on the fact that I am from the industry for the last 23 years. You can verify my statement by checking export data on Zauba.com for Vidhi’s main products (copy pasted from their web site). Just remember that the data given on these sites is a few weeks old so it may only indicate the trend. My info is that prices today are lower than what they were a few weeks ago.
QUINIOLINE YELLOW, SUNSET YELLOW FCF, CARMOISINE, AMARANTH, PONCEAU 4R, ERYTHROSINE,
ALLURA RED, PATENT BLUE V, INDIGO CARMINE, BRILLIANT BLUE CFC, GREEN S, BLACK PN, CHOCOLATE BROWN HT.
I must add that such ups and downs are very normal in this industry and both companies have experienced managements who know how to manage these swings very well.
company has posted good set of numbers for last quater. mgmt has said in AR this year will be a tough year. despite good perfomance and reduced debt worth considering it at this level.
Good set of nos for Q1. Despite topline degrowth, margins expanded. NP up sharply. Future growth of course depends on Dahej expansion which is taking a long time for clearances. Low valuations do give comfort to hold.