ValuePickr Forum

Meera Industries : Worth a look

(Ashwini Damani) #90

How much did the new machine cost. Meera has till date spent peanuts on such machines, so let me know cost of new machine.

Why can’t someone else procure same machine.

(Ashwini Damani) #91

Well, in past your analysis has been wrong in more than one stock, and mostly you have been invested in stocks where stock has fallen tremendously . Price is separate, in most cases the business itself has done very very bad. So you should revisit your investment habits. Hence one gets the image of a operated stock. Even in this case , I have many times pointed out that numbers don’t add up.

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(vipsy) #92

For sake of knowledge, I tried to check the machine from it’s photo.
It looks like a this or a variant of it. https://www.bodor.com/Fiber_Laser/P_Series/44.html

Googling around, some sites mention price around ~1CR, may be base price, but I am not good at estimating final cost.

(M S S Murthy) #93

Just seen your post and felt sad to see your personal attacks. I reserve my comments .

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(Sumit 2.5 C) #94

Well everybody’s analysis been wrong time to time, no pro has made it big without being wrong many times in their life. And with micro and small caps, the risk is even more and the reward is exponentially higher. We all know that. And so lets talk only stock/business rather than personal attacks.

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(M S S Murthy) #95

My investment in Meera Industries was made at Rs 150 and as such there was good appreciation on that as of now.

(Ashwini Damani) #96

Hi,

Can you explain the ROA of this company. How can a manufacturing co have such a high ROA. Dont you suspect these numbers.

Company has Plant & machinery + factory of just 1.3 Crore odd. How can it do sales of 21 crore that too when its in a business that makes machinery (which is a capex heavy business).

Or is it that you didnt bother to look into this , or chose to ignore willingly

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(Sumit 2.5 C) #97

The high ROA is because their factory is rented, and machines are also depreciated. Couple of my friends visited the facility and met with management, they are super excited to see the factory setup and though process of the promoter. Promoters are very much hands on, sorted and thinks big. Capex and operating leverage yet to play. Company is genuine and has huge potential ahead. Numbers will speak.

(Ashwini Damani) #98

Dude I asked question on ROA. U have replied ROE.

I’m seeing huge red flags

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(Sumit 2.5 C) #99

That was typo, I replied about ROA only.
you see red flags, somebody else will see opportunity. That’s how market is, different opinions.
You buy whatever you are comfortable, and stay away from whatever you like. Nobody forces anybody here. Investors always responsible for her action. if you are interested about this company go visit their facility, try to meet management.

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(Ashwini Damani) #100

Dude ROA was calculated on Gross Block of assets. At least open the Balance Sheet before relying…So your depreciation point is invalid.

Btw…many people visited factory of Omkar also…we all know what happened to it.

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(Ashwini Damani) #101

I think I am balancing the discussion here by posting negative reviews. I see several red flags in this business and at this valuation and would seriously caution everyone to stay away

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(Sumit 2.5 C) #102

Well even this high ROA is fine, Meera is not the only company likewise. A micro cap with such excellent revenue growth, rented property can have such high ROA, I guess, though my experience and knowledge is limited in market. BTW, I think you should work to tone down while replying to others, that is not required in stock discussion. I seen you spreading negativity and attacking few investors here in VP. I think we can always avoid arguments/personal attacks here; sometimes it’s better to ignore. And as I said, you stay with the stocks you like and avoid the stocks you don’t. If company consistently post good numbers, investors will anyway chase the stock/price irrespective of what we discussed here in VP forum.

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(Koushal.vv) #103

Guys I have a dumb question, what are the competators of this business. If they are increasing sales do they have any competation from china? All I can see from the photos present in their website is a bunch of motors and threads + spindle., Do they have any patients? Seeing such low volume feels scary to add the stock.
The machines are used to make carpets ? Correct me if I am wrong…

(Ashwini Damani) #104

I am ensuring that good genuine guys don’t fall into a trap and loose their hard earned money in stocks like Intense, Meera , ITL and Omkar. Vp tag line is separating wheat from chaff. Hence I’m living up to it, so that people don’t fall prey to story investing. In this case you have not even spent time in understanding what I meant by ROA. So please do some research

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(Ashwini Damani) #105

The whole point is to check whether the numbers being reported are correct or not. We all know what happened to other picks like Omkar, International Combustion, Intense . I think you were quite bullish in some of these and with my foresight and your hindsight most of these stocks have ended up duds.

So let us put it out for benefit of members here what has been your past experience in spotting red flags and what has been mine. Members can then take a call on whether to ignore red flags raised by me or to still follow ur advise despite past mistakes

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(Sumit 2.5 C) #106

Well I am doing research at a level I am capable of, as I said my knowledge is limited. I can be less qualified than you and still can make lot more money than you (‘I’ and ‘You’ just examples here). if formulas would find the multibaggers then only CA, CFAs would have been richer in market, that’s not the case, I guess. It’s a different game.
Yes, I am holding few of the stocks you mentioned (and not all), and what you are saying have ended up duds has a long way to play (at least the stocks I am holding). Looks like you made huge loss in some of these stocks, because you have entered them in very wrong price and now running agenda to pointing red flags, doubting on numbers. Probably I should stop replying to this conversation as its dragging me down. Some things are better to be ignored. You can continue with your red flag.

(Sumit 2.5 C) #107

Meera is mainly into machinery in filament yarn sector, Technical textiles, carpets, stitch yarn (quilt yarn, footwear) are the major application segments.They also make machines which can make niche items like medical sutures, bandages, parachutes, nets, bullet proof jackets and harnesses.And their yarn mfg division is more to showcase their machine capabilities…but also runs as an independent profit centre.

I think their major competition is from European equipment manufacturers, but Meeras machines cost substantially lower than European machines. On the other hand European machine will have some higher automation. Meera operates in the gap between the costlier European (high end) machines and low cost low end machines. Asia africa Europe are major exports markets. USA unit also doing good, they have pacts with two companies for supplying machines for yarn twisting and winding process.

They should not have major competition from China. These are innovator products, some of them have been introduced for the first time. But I don’t think they have any patent. Regarding low volumes since the Stock is in SME segment and has a lot size of 500 qty retail participation is low, once it moves to mainboard volume may increase significantly.

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(Koushal.vv) #108

Thanks for detailed info about the company…I have it in my radar now…

(Ashwini Damani) #109

Company makes machines for textile cos and itself owns very few machines. How does it manufacture these machines. What is the process. Where is iron and steel in inventory.

How can you manufacture machines without having a proper process plant of your own. Look at the fixed asset schedule of Meera.

Also you need inventory of oil, steel, consumables etc to make those machines (raw material). Where and how much do they own.

I have never suffered losses in any of the dud stocks you own, because I ask questions which u are conveniently ignoring. (Purposely)

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