GNFC - Turnaround Taking Hold


(suhagpatel) #223

Some more info on the Neem products distribution network.

Blockquote

One of our strategic plans in the Neem Project has been the forward and backward integration of the business and therefore we have spread our wings far and wide to states like Maharashtra, MP, UP, Rajasthan etc. We have been able to make landmark progress in seed collection and product marketing in these states. With the KVIC unit, we intend to cover more than 7000 khadi outlets across India. GNFC has also opened first of its kind Neem Stores and Neem Parlours in various cities of Gujarat. We also supply Neem Products to more than 1500 outlets of Central Police Canteens across India and will soon also be supplying to more than 3000 defence canteens of the Canteen Stores Department (CSD). We also supply to around 100 Kendriya Bhandars in Delhi,” said Gupta.

He further added, “We are also shortly entering into agreement with the Department Of Posts for sale of the Neem Products from the Post office counters across Gujarat. Based on the initial response, the Post office model will be replicated in other states. We are also in an advanced stage for exporting the products to the US and Gulf countries.”

Neem parlour is another innovative and out of the box idea from GNFC. It has opened 17 company-owned outlets and 24 garden parlours in Ahmedabad, Surat, Vadodara and Rajkot. The company has lined up plans to increase its footprint to nearly 40 stores and 40 parlours. It is also exploring options to introduce the franchisee model and would have a uniform design in line with our own Neem Stores and Neem Parlours, Gupta pointed out.

Blockquote

http://www.mydigitalfc.com/fc-supplements/roar/repositioning-brand-value

Regards,
Suhag


(jajushobhit) #224

I just had a glance at the results. GNFC has closed FY18 on a high, with a consolidated EPS of 51.15. The balance looks stronger than ever, with repayment of debt and no material increase in receivables and inventory.
Disc: Invested

Regards
SJ


(indirachitra) #225

Excellent results
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=c05e5f2f-0ecb-4144-8be3-5282b0c838dd
Debt free nearly 1400 cr operating profit 800 cr net profit with no contribution from fertiliser segment even considering the cyclical nature of TDI price in the coming qtr this company should command a decent market cap of above 9000 to 10000 cr which will be still working to 7 to 7.5 EVE BIT and at present ROE stands nearly at 20% and at the present CMP the PE is less than 8.5 so even at a normal 15 PE the price should be above 750 and will be 2.5 times book value of 285 hope for some re rating
Disl invested


(suhagpatel) #226

Overall great set of numbers. Last year they had exceptional item of Rs. 292 crores. This quarters the numbers are without any exceptional item. EPS of Rs. 51 for the entire year is above all estimates. Fertilizer segment posting loss is a negative. Should check how recently launched DBT will help fertilizer sector. Other income (IT and others) also halved which is not good.

Now company needs to come out clearly with capex and future expansion plan.

Dividend of Rs. 7.5 is 50% higher than last year.

Can someone help me to understand what is Sr. No 10 “Other Comprehensive income”?

Regards,
Suhag


(Aditya Mehta) #227

Re-rating should happen in this counter.
But going fwd what are mgt plans in order to maintain pace of growth?
Can anyone throw light on their fertilizer business , why they are into losses n whether it is possible to turn it into a profitable business?


(Mridul) #228

Overdependence on tdi will hurt them. Before that happens, they have to come out with right plans. Stock movement will depend on TDI price for time being.

Fertilizer segment is in losses, reasons for which have been discussed in detail in last few concalls. There has been gradual improvement.

Numbers are spectacular and certainly above estimates. Would be an interesting concall.


(rahulshares) #229

Waiting for @Capsule91 view on GNFC results? Really respect your research and I too agree that GNFC is at top of the TDI cycle and tdi prices could correct in q2.


(suhagpatel) #230

One thing which i observed is current TDI prices are $4000-$4200 where as they were $4200-$4500 in the beginning of April when Nigel visited GNFC and interviewed CMD.

Capex authorized in Fomic and acetic acid. Talks are on with RCF for their fomic acid plant.

No mention of turning fertilizer division profitable, Neem or IT.

Need to wait for concall to get more details.

Regards,
Suhag


(Aditya Mehta) #231


Some details n future prospects of fertilizer business shared in this interview.