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
Did I understand this correctly? The promoters cancelled 4% of outstanding shares that they could’ve taken for themselves, resulting in increased EPS.
Was not aware of the name change either,so thanks, Capitalmind!
Garware-Wall Ropes Limited rebrands as Garware Technical Fibres
Limited to power high growth trajectory
Garware old website has been totally revamped along with new names Garware Technical Fibre.
Please go through the same for a pleasnt n informative reading.It should lead to better visibility nad PE rerating.
Sir, how will a pleasant website lead to PE rerating? PE is already 30.
how does PE increases for a company and co gets rerated?
Double profit in 5 years is only 14.87% CAGR and in 7 years it is 10.4% CAGR. At a PE of 30, that CAGR should lead to a re-rating on the downward side. I am assuming that is what you meant - a PE derating.
HAve u exited or still invested in stock? i am happy with co and will stay invested n like the story
I’ve been invested for a long time and continue to be so. However, that is separate from the forward guidance, which is conservative and just by itself would not lead to any positive inference on the re-rating or anything of that sort.
Good videos to understand culture of Garware Tech Fibre.Its name was a classic misnomer aka Peter Lynch favorite theme where obscure names hide the real business.Once its removed it attracts the attention of the new investors and helps in improve the visibility and consequently rerating of company.
Enclosed are some old but excellent reports from Ambit for better understanding of Garware Tech Fibres
A request to Pune/ Mumbai VPers .can someone attend 2018 Garware tech fibre AGM and share the notes please ?.Attending AGMs of quality cos is a really good habit which helps in better understanding and indirectly helps build the conviction and consequently wealth,Friends pl do help