Kesar Terminals and Infrastructure Ltd

Stock Opportunities Not-so-Hidden Gems
304
  • As per FY17 balance sheet Consolidated debt was 113Cr, TTM Standalone profit was 17.9 and cash profit would be 19cr+

At 12% rate, max interest would be 13.5cr

  • Regarding competition and pricing pressure

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Sales are stable since last many quarters
Even in last quarter, company did 10cr+ revenue, but profit margin down to 30s% there could two possible reasons

  1. If the company is facing pricing pressure, revenue should come down along with margins, but as revenue is stable, was the volumes increased? if so is there any possibility for the company to regain the margins in future as the volumes increasing

  2. There could be one-time expense during the quarter due to which margins down but not the revenue

Disc: Not Invested

305

one should wait for KMML facility to get good business. right now the
pawarkheda set up looks like a white elephant. there is also the
qualitative factor regarding the promoters. they have run most of their
businesses to the ground, and this too could end up that way.

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