Manpasand Beverages Ltd :- High growth potential stock


(paresh.sarjani1) #279

Bold announcement by Chairman…AGM outcome

Fellow boarders please update if anyone attended the meeting


(Devaki Nandan Tripathy) #280

If implemented, this will lead to a rerating of the stock. Contrary to popular perception and bombardment by Amit Mantri, their marketshare figure seems genuine. Confirmed this while having an informal communcation with a Nielson guy.

There are still corporate governance issues. If they move in high growth path, market will look the other way while valuing them. However if they falter on growth front, it will be a value trap.

Disc. Initited position during recent carnage.


(girish_patkar) #281


Promoter is buying from market on weekly basis. Any view on this.?


(Devaki Nandan Tripathy) #282

Not only promoters, even MFs are adding every month.

It is in the process of base formation. Would take couple of quarters for a turnaround.


(Nishant Sah) #283

Has the management come out clearly and answered any of the questions asked by Mantri.

I could not find any. And his post had hardly much to do with the fall. The fall began more than 1 year after his post. The markets knew of his posts. noone realized that what he was saying had merit.


(girish_patkar) #284

I can see only SBI AMC has increased that too in the month of June. All others have either reduced or exited completely. in the last 2 months no one has added or reduced.Need to closely monitor the MF actions on this stock. The base may not sustain if there is no institutional support.


(Devaki Nandan Tripathy) #285

The market is a slave to earnings. If there is earning growth, it will move accordingly, with or without support by funds. But without earning growth, no amount of fund buying would achieve anything.


(yesudeep) #286

I’ve been watching this documentary, which goes very well into how “growth and expansion” can lead to mediocrity. Do consider watching.


(Rohit) #287

Despite all the things happened in few months , promoter is buying continuously on every dips from markets. How should we interpret that. Can we assume , things will be resolved in LT and their may not be serious troubles in the company. Stock crashed 70-80 % from highs and valuation wise looks cheap. Why the promoter will buy from open markets if their are serious issues in the company ? Request seniors to share their views.


(thecroc) #288

Since people have had doubts about ground checks of Manpasand sales, until people say they have seen Manpasand in various places in the Northern India, I would suggest not to start looking at this. Once we have confirmation based on channel checks from brokerages , then I guess a better understanding will evolve. Until then everything else may remain in the category of doubt.


(sainkar) #289

Before jumping this stock first check

  1. Latest quarterly results
  2. Ask question whether it can be candidate for ‘Pump and Dump’

(Multiplier777) #290

Rohit,

Without casting any specific aspersions on promoters of Manpasand, in general, promoters are one step ahead of investors.

Check Ashapura Intimates Fashion. Promoter was continuously buying from the market from December 2017 till September 2018. Today, he is physically missing and the stock has been on a lower circuit for weeks. Already down 75% from 52 week high.

Check the buying by the promoter from the market.

https://beta.bseindia.com/stock-share-price/disclosures/insider-trading-2015/535467/


(paresh.sarjani1) #291

Manpasand results out…

Profit more or less same as last year but if we minus inventory then it’s more…

Receivables up by 40 crores (same for Current borrowings)

Cash and bank balances are also up by around 30 crores which looks positive on balance sheet

No CWIP means…lot of capex looks like commission soon…

Any more observation… please update


(EL) #292

Sorry why would you minus inventory
Inventory is 10k on balance sheet


(EL) #293

While looking at their historic balance sheet,
Fixed assets (mind you not capital work in progress) shows as follows:
2015 - 85
2016 - 266
2017 - 448
2018 - 534
On average they are building one plant a year. What are they constantly building so much of ?
Maybe the company should be called “Manpasand Real Estate”
There is not one period over the last 5 years that the company has stopped building something and concentrated on consolidating.
So one can never know what the business generates in cash as they constantly need extra cash for building
If they want to hide a poor business, they can build some more
I think this year one more plant is finished - so march 2019 will again hide cash flow pattern
And going by their record, I wont be surprised if they announce another plant for year ended march-2020
If they dont, and they still survive, that year will show what the business is capable of generating.
In all likelyhood they will find it difficult to raise cash for one more plant


(bkasal) #294

Need to ready Auditor’s notes before looking and concluding on numbers filled. Tha

nks.


(paresh.sarjani1) #295

@bkasal
No doubt you have highlighted this … But just wanted to know…is this first time auditor have mentioned this?


(Susindar) #296

Audit is performed only on the year end financial statement as it is time consuming. For quarterly and half yearly statements, a limited review is performed. This is the case for all companies.


(bkasal) #297

Yes you are right about audit. However, Point-3, does that mean company not even shared mandatory information with Auditors.
Is I am missing any point here?

Thanks.


(Susindar) #298

All the paragraph says is that nothing has come to their attention which showed that the company did not comply to regulations. This is the usual wording in a limited review.

An audit will give a positive assurance that the financial presents a true and fair view. However a limited review only gives a negative assurance which will say that nothing has come to their attention which is negative as the number of tests involved are much less in a limited review.