Dear fellow investors/experts,
This is my first post in the forum, though i have been reading the forum. This is a wonderful platform for novices like me and a great learning source.
Coming to Kitex Garments, I know that there has been quite a big amount of analysis and discussion about KGL-KCL issue, which is my main concern as well. I was baffled with the questions like how will they divide the orders, cant they just put more orders in KGL kitty especially since KGL the public entity is not doing well of recently, how do they divide the balance sheet between KGL and KCL etc. However from this thread i got answers for them.
However, when i compare the figures of KGL and KCL, and again those of KGL and the combined entity KGL+KCL, and plot the graphs (attached)), I am getting more baffled than ever. KGL vs KCL and KGL vs KGL+KCL trace eerily similar lines in the graph (except for sales and profit in the former case).
Any thoughts on how to make sense of these? The comparison may corroborate what the MD claims - that he is trying to grow both companies, with more preference to KGL. However, there are these haunting questions still - How can they divide in such a way? How can they both be nurtured in such a correlation?
Look forward to more insight.
Best Regards,
Johns George
