FiberWeb India - Bouncer (growth) or yorker (trap)?

(Sameer Shah) #131

I too have sold out my holdings. I recollect on concall post recent quarterly result, CEO of company spoke about US clients visiting the plant and we should see barrage of orders being placed by them in next 10-15 days that will trigger production from newly installed meltblown unit. It’s been close to month and there hasn’t been any update on that. Instead bonus news came in. All this seems to be mere excercise of pleasing stock price from management. If bonus is a good news for investor, then who is selling substantial quantity in past few days ? Seems like distribution is on. Again I could be wrong and and stock may break it’s all time high of 389. However, things are to uncomfortable to stay put.

Disc : Exited recently.

(phreak) #132

Looks like friends and family of Pravin Sheth who got cheap shares in the past can now sell them without disclosures. Nice going.

42 PM

(phreak) #133

Looks like we got it right and the endgame is underway now.

(Kumar Saurabh) #134

Had run a thread on Twitter on Chakri stocks/punter businesses . Can see some of them correcting 40-50 percent . Not at all surprised

(sjsandesh) #135

Promoter increasing stake in Fiberweb:

(sjsandesh) #136

Business Updates:

(MKT) #137

Thanks for sharing. Earlier a month ago there was a yearly, quarterly cap for price movement. Now that cap is not seen or removed. Kindly throw some light on this and guide me as i am not aware as to what is guidelines or processes for this cap on price movements. Thank you

(iamabhi_2015) #138

Hello Fiberweb Investors Highlights of last Share Holder Pattern

  1. Promoters holding is now rejigged as one Anil Jayaramdas Agarwal erstwhile in promoters group is now classified as non promoter with same no of sh of 400000

  2. Two new investors entered in this qtr Vanaja Sunder Iyer and Lucky Investment Mng P Ltd has

  3. Vanaja Sunder Iyer with a bulk deal of 175000 and total 396654 and he seams a mature HNI hope he has some insight in development of business of company and vision a line with management He has a huge portfolio of more than 180 Cr with major in Jamna Auto, Camlin Fine, Goldyn Tech, Lumax etc

4 Lucky Investment Mng P Ltd is an another investor in this qtr with 334883 shs and it`s Ashish Kacholia an ace investor company his entry is an important and remarkable event for all investors here in FIL

5 And the major sellers are non Seth promoters with 5.5 Lacs shares and now the actual promoters Seths family are there in the promoters group along with gayatari pipes so finally promoters cleaning up is over either non Seths sold there stack or re classified as non promoters this is good for new and young management as mess is clear now and only serious investors are here as shareholders Hope mngnt commentary will start pouring in about above and also about business of company like new orders and all

(sjsandesh) #139

Results, Press release and presentation for FY 2017-18:

(Gothamcapital) #141

What puzzles me the most about this company is why the company is earning so much profit?Is it selling some thing new since it came out of bankruptcy?

(nabilmoideen) #142

Unable to listen to latest concall listed on Can some one share the audio or pdf version please ?

([email protected]) #143

While I agree with most of the red flags raised by The_Confused_Consult and Sravanind, here is some latest information available from public domains -

  1. Lucky Investments (Ashish Kacholia managed fund) and LIC of India have some stakes in the company
  2. From 4th June to 6th June Mr, Pravin Sheth has bought some shares from open market. Though quantities are less like 21 to 22 K shares in total.
  3. Shares of Fiberweb getting locked in upper circuit for 3 consecutive days - 10% rise for last 3 trading sessions.

How can we analyse these new developments?
Disclaimer: Invested since Dec 2017.


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(iamabhi_2015) #145

Dear The_confused_consult, i have met the management but have missed the plant visit. I know some close associate of mine who have had the plant visit done and i have seen the plant video as well. This is true that there are certain red flags as pointed by you and thank you for bringing this to everyone’s notice but i will tell you what the problem is. The problem is Pravin ji. He is an oldie guy…he has difficulty in being investor friendly…when Bhavesh will take over, things are going to get in its place…bhavesh is a sound guy…what made me invest is the PE and earnings combined…moreover vora financial pvt ltd recently bought 1.5 lac shares at rs 62 roughly…you will see whatever shares has been sold by gayatri pipes, most of them are sold to biggies…let us see what is in store for us…but i am expecting turnaround on bhavesh’s entry…turnaround in terms of price…this 10 pe difference is because of corporate governance issue…once bhavesh comes, you will see the stock reaching 20 PE…i am betting the jockey now ie., bhavesh…all the best

(Left this forum) #146

Withdrawn due to requirement.

(Gothamcapital) #147

One thing that really bugs me about this company.Generally when a company has a foreign subsidiary(The UAE sub),the auditors make a statement that they have not audited that subsidiary and that they have been audited by others.On the other hand here no such statement is made about that sub.Further the subsidiary has ZERO assets and ZERO liabilities and reserves and surplus of 2.98 crore and share capital of 17 lakh (according to page 22 of the annual report).How does the accounting equation add up here?Not to mention does the company really does not have any assets in that subsidiary?No furniture ?No land?No trucks ?No vehicles?Really not even one lakh rupees worth?How is that possible?

Btw,the auditors made a comment on the USA sub,which they say is insignificant in turnover and hence they verified by looking at the xerox copies of financial statements.

The other thing that was rightly pointed out above was the zero interest earning cash and not to mention all the points raised by The_confused_consult.

(Gothamcapital) #148

I have looked at the depreciation schedule and clearly something is odd.The computers section is depreciated in a very slow manner.The depreciation expense for the computers was 1 lakh on a straight line basis on a total asset cost of 25 lakh.However according to the schedule 2 of the companies act the time period for computer’s depreciation should be 3 years.In no way can there be a 1 lakh charge.
Similar for office equipment ,a depreciation charge of 17000 rupees for office equipment of gross value

([email protected]) #151

Let me admit, my investment decision was based upon very basic analysis like Revenue growth, operating margins, capacity expansion which will lead to more than doubling revenue, attractive PEG ratio and so on and so forth. I haven’t done detailed analysis of Balance sheets and cash flows etc. Thanks to Valupickr forum that has given me broader perspective to get into minute details.

([email protected]) #152

What signifies me presence of Smart investor like Kacholia or Institutional investor like LIC is confronting fact that they might have done thorough analysis. Institution like LIC must have stringent research process to follow as they handle public money to invest. So this is more comforting in waiting that stock will get re rated and company have good fundamentals. Agreed that there is corporate governance issue - but in my opinion it can sorted out with good accounting practices and getting good auditors on board. 8K Miles was also red flagged for some corporate governance issues. But now they have on boarded Deloitte for auditing. In all this makes me to be patient and wait for more period to observe how things move before arriving at decision. So I will continue holding for another 6 months at least

(Mahendra243) #153

Just to point out LIC has many dud investments…the list is too big…recent example is vakrangee where they hold a huge chunk

([email protected]) #154

Trying to put my thought process on points. Though don’t have clue for all. I welcome members to correct me if going wrong somewhere.

  1. We all know that Crude oil prices have increased sharply which is raw material for PP. PP being main raw material for fabrics I don’t think rise in raw material price is thing to worry.
  2. Yes. There is reduction in costs which has no explanation. So leaving it to wild guesses. Power cost reduction is from 2.56 Cr to 2.37 Cr. - less by 7% aprox. Freight cost reduced from 6.18 to 4.84 Cr. - 21% reduction. Packing material cost reduced from 2.28 Cr to 1.92 Cr. - reduction of 15%.
  3. Net block addition may be due to purchase of new machines for capacity expansion. We have melt blown capacity operational since Oct. 2017. Page no. 92 of AR 2017.
  4. Trade Payable is reduced from 2.42 Cr to 1.72 Cr in standalone BS - page no. 78. There is reduction of 26%
  5. There is same increase of 3 folds for FY18 statements as well. I asked a question on same during conf. call. Explanation was not satisfying. But it goes like for 100% revenue jump there is rise in receivables + some more credit is given for new products from melt blown facility for trail orders. Of course, this is for last FY and not FY17. The rise in trade receivables is some reason to worry. I agree.
  6. Cash and equivalents have rose from 6.41 Cr to 21.51 Cr. during FY17 - details on page no. 89 of AR.