Meera Industries : Worth a look


(krrish seth) #41

This counter have very low float and looks expensive on every aspects.

Is there any timeframe when it’ll be listed on nse & bse


(srvn) #42

free float should be 25-30% based on non-promoter holding;which is comparable to many promoter held firms; float in terms of no of shares may look low but that is also because the no of shares of the comp is less; in terms of listing in nse and bse, i dont think it is a stated agenda from the firm though logically considering their expansion and progress that should be their target;


(nithin) #43

tTalking to one of the investor I was told 18 months before we can buy single shares.


#44

rules for main board listing

  1. 24m on sme
  2. 10cr paid up capital

Meera is still 18m away from main board


(M S S Murthy) #45

http://www.bseindia.com/xml-data/corpfiling/AttachLive/00a5298c-8564-4223-ba4d-b4c5470e568e.PDF

Developments as per the board meeting dated 8th Feb 2018 of the company

  1. Special focus on new developments and top line growth for financial year 2019 - 2020
  2. Keeping phase with the double digit top-line growth the board has decided to expand the scope of machines to rope industry in addition to the existing machinery designed for textile industry
  3. The board felt that this will pave the way in growing sales in coming years
    4.The board has decided to take initiatives to participate in several domestic and international exhibitions to tap a larger base of mid and medium customers worldwide

I feel the above steps will greatly help in expanding the markets in scope and size over the present small base of Rs 13.71 Cr in sales - FY 2017, and present market cap of Rs 149 Crs.

The significant pointed to be noted here , in my view, is the existing sales being small at Rs 13.71 crores for FY 2017, any meaningful improvement in sales and profits will possibly take the company into a higher orbit in performance which is likely to be appropriately discounted into the share price in future.

I am holding on to my shares in Meera Industries for a long long time to come.


(srvn) #46

Guys, any cause behind continuous fall? I don’t see any fundamental change as such. Why no Q3 FY 17-18 nos released yet?


#47

Pls be familiar with SME norms before investing. SME stocks give results only twice a year, H1 and H2, namely q2 and q4.

When a stock goes 10x…its only natural that some profit taking emerges.


(M S S Murthy) #48

I post here my comments made recently on moneycontrol board with some additions as appropriate
mssmurthy

The company has to day intimated BSE about an order received from Indonesia for USD575000 for the supply of Twitter/Cabler Machines for carpet yarn and that the order will be executed first half of FY2018-19. The company is expecting to receive further orders from the same customer.I see that this order alone would add about 5 to 10 percent growth in earnings of Meera Industries for FY2018-2019. I also see that this is one of very few companies out of SMEs listed in BSESME platform which has performed very well by virtue of quality of earnings ,
One, potential to grow over a small base,
Two, High margins and high return on net worth at 40 percent plus, Three,moat by technology and innovation,
Four ,diversity of customer base,
Five, liberal dividend policy,
Six, burning desire on the part of the young promoter to surpass their self imposed target performance.
After having multiplied many times since last one year the share price has recently come down by about 40 percent which is understandable as it is still several times from the Rs 40 levels prevailing 10 months back .

I continue to hold in anticipation of better performance over next three years at least .


(M S S Murthy) #49

Here is a Bloomberg note on Meera Industries posted in a whatup group on SME Stocks.

By Hemal Savai
(Bloomberg) – Meera Industries Ltd. – which has gained
568% since its 2017 IPO – expects its U.S. revenues to more
than double this fiscal year, thanks to its local subsidiary
state-side.

  • “We don’t expect tariff issue to affect our business in U.S.
    as we have a subsidiary there and most business is transacted
    through it,” Managing Director Dharmesh Desai says in a
    telephone interview on April 9
  • Meera Industries, which debuted on BSE Ltd.’s exchange for
    small and medium companies in May last year, expects its U.S.
    unit to generate revenues of up to $500,000 in FY19, a 150%
    growth against year ago period, Desai said
  • The company’s U.S. unit commenced operations in September and
    has signed pacts with two companies for supplying machines for
    yarn twisting and winding process, according to a regulatory
    filing
    ** NOTE: India has about 370 companies listed on two platforms
    offered by BSE Ltd. and National Stock Exchange that are
    exclusively for listing of tiny companies
  • Meera expects to win orders worth of $300,000 from Turkey and
    Bangladesh within next 2 weeks and sees inflow of contracts
    worth 150 million rupees from local market
  • Based on outlook for potential orders from newer regions,
    Desai expects to report revenue of 210 million rupees ($3.2
    million) for FY18 that ended on March 31 – a 60% rise over its
    revenue for previous year
  • For FY19, he expects Meera Industries to report revenue of 350
    million rupees
    ** Net income: Meera expects profit of about 25 million rupees
    for FY18 and 45 million rupees for FY19 vs net income of 10
    million rupees in FY17.

The note details the latest developments on Meera Industries coming from the horse’s mouth - of a telephone interview by Bloomberg with Mr Dharmesh Desai - and gives an optimistic scenario which is in tune with what I have been anticipating all along from this small and nimble footed company.


(starman) #50

Can you share the link for the Bloomberg note that are you are referring? I Googled for the same but I could not find any. I think there seems to be lot of whatsapp/telegram groups spreading lot of rumors and gossips, especially for small and microcap stocks as these can be easily manipulated.

I am not saying Meera industries is a bad company, but we should be careful before investing based on some whatsapp/telegram group recommendations.

Disc: Not invested but tracking.


(M S S Murthy) #51

Yes.I’ve received the post through a what’s up group which is familiar to me in which I often post. I am invested in Meera Industries and hence tracking that company and since the ‘ Bloomberg ‘ message is in consonance with what I’ve been seeing in the performance of this company for past 18 months I have shares the contents here. It did not occur me to scan the net for the related post before posting here. What you have stated on rechecking makes sense .So I will try to write to the company on their interview with Bloomberg and share here.


(M S S Murthy) #52

I understand from the what’s up group that the Bloomberg note is meant and circulated for their paid clients. Also reply to mail sent to the company on this is awaited.


(M S S Murthy) #53

https://www.bseindia.com/xml-data/corpfiling/AttachLive/6EB33240_1769_43EF_B5F9_0144E3AA003E_134155.pdf. Results of Meera Industries


(M S S Murthy) #54

The results are in tune with the interview of the promoter with Bloomberg which was reported earlier here in this group.The sales revenue at Rs 21 Crores and net profit at Rs 2.65 Crores declared in the results for FY2018 are in synchrony with what is stated by the promoter in the above stated interview and lends credence to the same .If we are to go by the same interview the promoter expressed confidence about a better performance by the company in FY19 at Rs 35 Crore in revenue and Rs 4.5 Crore profit which I feel he would be able to achieve due to increase in the number of clients from different countries and broad basing the range of machines and marketsI believe that the increasing sales coupled with increasing range and market , high margins,lower base level of the business as on date, offers good scope for appreciation of the share value over next few years. While the EPS for FY at Rs 6.9 indicate a higher discounting , the high-margin, low-base, high-ROC, combination gives me confidence in this small and nimble footed company promoted by a young technocrat with a transparent business model.
I am invested in Meera and continue to hold for Long in anticipation of a good performance in nest few years.