JHS Svendgaard – An Oral Care FMCG Major In Making


(Bhavik) #21

Tano booking profits? It is selling at 50% loss.

Disclosure: Heavily Invested.


(Krishnendu) #22

From the AR … I can see their contingent liability is of almost 210 Cr which is really worrying fact.

Contingent liabilities
I. Claims/litigations made against the Company not acknowledged as debts:
a. Sales tax demand Nil (Previous Year Nil).
b. Winding up petition filed against the Company Nil (Previous Year Nil).
c. Matters under litigation:
(i) Claims against the Company by employees, vendors & customers amounting to C3,72,38,145 (Previous Year
C3,05,78,000).
(ii) One of the major customers of the Company has wrongfully decided not to renew / terminate the contracts
across all the business segments due to which certain assets got idle. However, in order to safeguard the interest
of the shareholders, the Company has been pursuing litigation and has sought specific performance of the
contract as well against these arbitrary and unjust acts of the multinational company. The Company has filed
various suits against the said customer amounting to C6,29,99,80,817 (Previous Year C6,29,99,80,817) and vice
versa said customer has also filed counter claims against the Company amounting to C2,06,14,52,365 (Previous
Year C2,06,14,52,365).
The management of the Company believes that the ultimate outcome of these proceedings will not have a material
adverse effect on the Company’s financial condition and results of operations.
II. Others:
Bank Guarantee issued by Bank amounting to C69,10,605 (Previous Year C69,10,605)


(Bhavik) #23

The counter claim is filed by P&G against the claim by the company of 600 cr. How serious this counter claim is a question. To my understanding it is poised to be a long drawn legal battle with such high claims not being awarded.


(J2EE Professional) #24

you mean the average purchase price was around 70+ because i see them selling at any level above 36 or so.


(Sahil Taneja) #25

is this selling of shares by Tano, a publicly available data ?


(J2EE Professional) #26

yes it is declared on the BSE.


(Bhavik) #27

Yes it was around 98. It is weird that the management is showing Tano’s
presence in the annual report and the fund is selling in open market.


(karthikprasadv) #28

The fund got in at 90 something i believe


(J2EE Professional) #29

but there could be many reasons for selling out. maybe their vision does not agree with founders vision. also let’s not forget nikhil vora and its funds has increased exposure too. the only thing is the supply could keep the stock from going up too much and this consolidation could be very good for the stock technicals by the way :slight_smile:


(Krishnendu) #31

Management Interview.


(J2EE Professional) #32

he looks confident, let’s see how the next quarter’s result pans out.


(MHS) #33

@j2eeprofession_ @Bhavik

Tanos purchase price news dated Mar 14th 2011: at around 98.0 Rs.

http://www.livemint.com/Companies/C09VJUXJcCeQg2X0LN4OIP/Tano-Mauritius-India-buys-1466-stake-in-JHS-Svendgaard.html


(nitin.verma) #34

Please check the date before posting, it’s an Old news from 2011


(MHS) #35

Request you to read the post once again - Yes it’s an old news and posted the date also and replied to the query asked in the earlier posts - what is the buy price of the fund in 2011, as of now the fund is offloading their stake by selling in the open market.


(J2EE Professional) #36

if it was purchased in 2011 then its quite likely a compulsive offloading on back of some redemption as these people have an average time of 5 yrs… not sure how to verify it though.


(parthibansubramanian) #37

its a high risk company… in my opinion.

Disc- exited recently. due to the uncertianity in the court case…


(Abhishek shah) #38

If the company gets 600cr cash, it will be no longer a micro cap…but if it loses the battle against p&g …it will get wiped away…where it will bring 200cr from…and mgmt says this will not have material impact on their financials…
How big can this aquawhite opp. be…?it’s a highly competitive market…you are trying to compete these elephants who can throw money on marketing like anything…secondly, I didn’t like the theme of their ad campaign…they are trying to sell a tooth paste using double meaning…it might hit the nut, but I feel it not to be a good way to promote ones brand…
They have written off a lot of line items this year…they have written off trade receivables…loans and advances given…etc…I understand about trade receivables (being p&g) but what about loans and advances? Whom did they give loan to? And why are they writing it off now? Probable case of capital misallocation?

Views invited…these are purely my personal views…


(chets) #39

I was in Himachal 2 weeks back on vacation. I visited 2-3 towns during this period.
I couldnt find their products being sold in the local shops that I visited. Not sure what is their marketing and sales strategy.


(J2EE Professional) #40

i have seen it in kala amb.


(J2EE Professional) #41

very good results by the company.