Emmbi Industries - Boring name. boring business

(Saravanan B) #102

I agree to your point. I am concern is centering on the price that already factors in future growth. There are no answers for the questions that we are asking.

For instance, if we are telling it a niche, why we don’t see the variables reflecting in margins?

  • Increasing Debt

  • Mediocre working capital management

  • Increasing capex

  • Operating cash flows not sufficient to fund its growth due to which they rely heavily on debt

  • High interest paid towards the debt

  • High management remuneration

  • Inventory days are high, cash conversion cycle is also high provided they get a portion of their revenue through exports

What’s the excitement about? What’s the niche in a global level? I am just trying to understand.

What would make hidden champions to take a stake in such a company? I believe people who had invested in this company for a long time could come up with an answer.

(Saravanan B) #103

FPIs exited. Smart foreign investors. Without getting unemotional, they exited on a profit. Fundamentals will always win.

(rkothuri) #104

That’s a very little amount that other FPIs hold. They have entered in Q3 and exited in Q4. I am not sure what have made them to exit in just 1 quarter. At the same time I see HCF increased the stake to 7.19% from 7.16%. Unless fundamentals deteriorate I don’t consider these FIIs exit as a case to worry. Waiting for Q4 results to take further actions/analysis.

(Saravanan B) #105

“When the tide turns around, we will know who is swimming naked.” ~ Warren Buffet.

(dm88) #106

If anyone attended the AGM then please share notes from the meeting…

(Anandh) #107

A meeting report from their largest institutional investor ‘Hidden Champions Fund’. This gives an idea into what they do and a kind of scuttlebutt

(Anandh) #109

I heard from a friend also on Valuepickr that when he had done scuttlebutt in agricultural fairs, there are many competitors to the company rather than the oligopoly/technology moat suggested by them. Their inability to take prices up also adds credence to this hypothesis.

(1.5cr) #110

Maybe they cant raise prices because of the low income of farmer’s in general… I would however love to know who the competitors are. Im sure quality and reach matters as well, farmers may not want to spend on a product that does not have some sort of post sales support, quality etc: So in that sense isnt there a moat that makes emmbi one of the top cos in each of their product lines?

(Manoj Agarwal) #111

Comsyn.pdf (1.7 MB)
Commercial Syn Bags Ltd listed on BSE SME platform is in FIBC bag manufacturing with 17000 tonnes capacity. For the half year ended Sept 18, it has reported a PAT of Rs.497 lakh. It has recently commissioned a 3900 tonnes food and pharma grade FIBC plant at Pithampura SEZ which has broken even at ebitda level for six months and will be PAT positive for full year.
Comsyn is expected to report PAT of 11 crs for full year and is available at Rs 49 crs market cap versus EMMBI’s expected PAT of 16 crs and Rs218 crs market cap.
Balance sheet wise too Comsyn has a much stronger and better balance sheet and metrics.
Will do a separate post on Comsyn soon.

Caution:SME Stocks are quite illiquid and have very high spreads.

Disc: am holding Comsyn