Looking at the financial statement of FY17 and FY16 we find that the company has changed its numbers in the balance sheet and P&L statement, especially payables and short-term provisions. No explanation is provided by the company for the changes made in the financial statement. Anyone with the information about the changes kindly reply.
The interest paid by Garware is steadly increasing, inspite of the company not undertaking any expansion project.
GOOD results from GWR. FY 18 RESULTS.pdf (1.1 MB)
High margin exports increasing.opp size increasing.what PE will one assign to this gem?
Results for FY 2017-18:
The bulk of the re rating happened when the company became a free cash flow engine between 2015 and 2017 - while offering some growth (7-10% top line range).
For the story to further get re rated from here, the management needs to communicate and prove that 13-15% growth is possible in the medium term and how they are going to go about doing that. That is when the market will get excited - generate strong cash flows which can be reinvested into the business and deliver above average growth over the medium term.
The Product development cycle of the company has been respectable over the past 7-8 years but they need something that can move the needle to the next level. I am keenly looking out for messaging in the upcoming annual report, this has not been a very investor friendly management so far in terms of communicating how they will grow the business. What they need is to invest more time coming out with investor presentations and do earnings calls.
Both Vayu n Shuja were frequently coming on TV giving good interviews explaining their vision n execution.Shuja last said that they will be focussing more on high margin export segment n they seem to be walking the talk