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


([email protected]) #155

Subsidiary may be working with leased space and leased facilities. All costs become part of operating expenses.


(Gothamcapital) #156

Firstly the accounting equation doesn’t hold,so there may be more ‘errors’ in the annual report.Clearly management have done a very shoddy job.Secondly it is impossible to have zero assets,no matter how much you leased assets you have?Finally the company is not paying taxes even for it’s foreign subsidiaries.How does that work?Similar thing happened with shilpi cables,showed extraordinary revenues with little taxes paid even in the foreign subs.

Just look at the freight costs they have fallen by a third YOY even though sales have increased by quite a bit.Same thing with power and fuel.Even the other expenses have fallen heavily.All these improvements have happened simultaneously?


(Gothamcapital) #160

The fact that they do not have any fixed assets(or they have leased all assets as you say )makes the company more suspicious.Mind you that the company also does not have any inventory (i have subtracted consolidated inventory - standalone inventory) raises more questions.Again the company is not paying any taxes on the subsidiary which is responsible for 40 percent of the revenue and also zero dividends are paid every year.It may have been because of bifr ,that it didnt pay dividends in the past,but why is not paying even a small dividend right now?


(sjsandesh) #161

SAST disclosure:
https://www.bseindia.com/stock-share-price/stockreach_sast.aspx?scripcode=507910&expandable=1


(Milind) #162

i feel when the stock price is down from 182 to current level and there is old management issue. I feel i have accepted that market know more than the reasoning we can think off and punished this stock like anything.

As there are so many good companies to think off… i have moved on from this…

Hope this help to confront with reality. I have gone through Kitex/ canfin etc. and have seen how kitex went from 200 to 1100 and came back and same kind with canfin. Now learned hard way to move on from favorite stories…:slight_smile:

My personal opinion and not following this company now.

Regards,
Milind


([email protected]) #163

I agree. This massive reduction in costs needs explanation. Particularly for power costs nose diving. Freight and packing can be effects of GST implementation. Will keep an eye for FY18 AR once out. I hope company will take cognizance of issues raised and improve corporate governance. Once capital being locked - I will wait for some more time for sure. Anyways current price is at dirt cheap valuations and positive cash flows and good BS will ascertain limited downside from current price.


(gautam124) #164

This might look trivial but might also have some reflection on Corporate Governance of Company-

Fibreweb-ANNUAL REPORT 2016-17

Mrs. Soniya P. Sheth Age: 32 years, Qualification: M. A., Nature of Expertise: She is Interior Decorator, Investment consultant & Dynamic professional also having good marketing experience. Name of Company in which she holds Directorship: 1) Kunststoffe Industries Ltd. 2) M/s. Stallion Breweries Ltd. 3) Chemical & Alkali Distributors Ltd., 4) Fiberweb (India) Ltd. She is wife of Managing Director Mr. Pravin V. Sheth.

Kunststoffe Industries Ltd. Corporate Governance Year End: March 2015

Mrs. Soniya P. Sheth Age: 30 years, Qualification: 12th Passed, Nature of Expertise: She is Interior Decorator, Investment consultant & Dynamic professional also having good marketing experience. Name of Company in which she holds Directorship: 1) Kunstststoffe Indus. Ltd. 2) M/s. Stallion Breweries Ltd. 3) Chemical & Alkali Distributors Ltd., 4) M/s. Bharat Capital & Holdings Ltd., 5) M/s Gayatri Pipes & Fittings Pvt. Ltd. 6) Fiberweb (India) Ltd.

Thats lots of qualification in such a short span!


(sjsandesh) #165

Prefential allotment to New Horizon Master fund to the tune of Rs.40 crores cancelled:


(sjsandesh) #167

Q1 Fy2019 Result presentation: