Check most recent PDF on BSE. There you get info of ruling from court too.
The file doesn’t seem to be available at above link. Could you please see to it? Thanks.
Capital mind has an article on JHS. I dont have premium membership. https://capitalmind.in/2017/05/taking-stock-a-deeper-look-at-jhs-svendgaard-laboratories/
Top Line 27.93cr (Mar '17) vs 25.55cr (Mar '16)
Net Profit 18.61cr (Mar '17) vs (17.63)cr (Mar '16)
Top Line 105.47cr (FY17) vs 100.08 (FY16)
Net Profit 21.98cr (FY17) vs (21.62)cr (FY16)
the key number is tucked in note 5. the company has received INR 27.5 crs as compensation which has not been booked as income and there is an audit qualification, the NP would have been INR 19 crs for March 2017. It would interesting to understand what respected seniors think of the same - clearly non-recurring income therefore prudent?
There is conversion of 4,40,000 warrants into equity shares at an issue price of Rs. 11. There is still a very large no. of outstanding warrants which may in due course of time be converted provided price is favourable for the warrant holders leading to equity dilution at lower price for existing shareholders .
Any idea what’s the issue price of all these outstanding warrants?
As per note 5, the compensation amount of 27,5 crores has been received by JHS after March 31st 2017. It will be reflected in Q1FY18 results. I feel it it is a positive for the company even though it is a one time exceptional income. It is good that the other party (P&G) has settled the amount in cash (? : will have to wait for Q1 results or AGM) within few weeks of settlement agreement dt 28march 17. The company can use for capex which they are planning to the tune of 30 crores.
Disclosure: Invested and may be biased.
i think all the warrants were issued at 11rs. these were issued i think a couple of yrs back and are well known. only other warrants issued were to HT which again is a general practice.
investors may find this of interest.
Nikhil Nanda’s interview on CNBC - http://www.moneycontrol.com/news/business/companies/jhs-svendgaard-expect-to-clock-20-30-revenue-growth-in-fy18-2300177.html
where can we read about how to calculate the fair value for such turnaround companies
I don’t know off any source which one can use to calculate fair value of turnaround companies. You need to understand the companies business, why it did not do well in the past and what is changing. You need to be able to see credible action being taken by the management - basically management walking the talk. The actions should be producing outcomes in terms of results either in the topline or bottomline.
Of late it has become common to see such articles in moneycontrol. Suddenly the stock hits multiple upper circuit. a few days ago a saw a similar one for a small footwear company. http://www.moneycontrol.com/news/business/dnp-dont-let-this-smallcap-go-unnoticed-2299173.html. Certainly not a good sign.
Coming to JHS svendgaard, I dont understand this hype. Their numbers are average at best. Forget about the number. Look at the category. toothbrush/toothpaste is such a highly penetrated market. Too add to that, its primarily a vendor to other biggies. what pricing power do they have?. and they dont even supply to Colgate which has more than 50% market share. i would rather not talk about their own branded products. i havent seen their product in any retail outlets.
i think it was not an article but an interview. Also, as far as their own branded products go, anyone can see them in and around HP, and parts of uthrakhand -as i have seen. They must have presence around other states but these two places, I have seen.
By the way, what hype are you referring to?
The reference that you are giving is for sreeleathers. The article is not wrong. It has a cult following in kolkata. And yes I mean CULT. It needs better management of it’s financial. But I think it’s one of the best business out there. The upper circuit maybe because people in rest of india do not know it’s name
Hi Abhishek Da,
I have invested in this company since Rs 38 level since Mudar Patherya and an unknown but good investor Aceinvestor recommend it . Couple of points I would like to add.
- It was in a turmoil due to it’s over dependence on P&G which has cancelled a long term contract of 600cr for Tide Washing Powder & Oral B tooth Pest & Tooth Brush.
- After this hit it has gone into a CDR and recent with customer diversification strategy it has overcome the hurdle.
- Management is clean and honest and also have improved a lot from the past.
- Dantakanti of Patanjali is earning a lot of revenue for them.
- Their branded product Aqua White is yet make a significant presence.
- The Oral Care market is highly saturated with Colgate so need to have a deep insight how much penetration it can possibly make.
- Recent run up in the stock is due their settlement with P&G of Rs 220 cr contingent liability.
- Earlier I have given Nikhil Nanda’s interview detail in the thread itself where you can find some insight.
One way is to compare turnaround co with similar cos on a price/sales basis. This is just a starting point though, please don’t apply blindly.
Disc: small long position from lower levels
Earlier they have given article around same line on JHS Svengaard also.
Later too they gave on Sreeleathers and Shivam Automobile, which spiked individual stock to hit UC.
This very brief interview by Mr Nikhil Nanda answers quite a few questions on their growth ahead. Must Watch
Hi @ basumallick
Kindly disclose : invested/ tracking/ not invested.