Have you seen any announcement by the company lately on depledging… After their last announcement they still had more than 10% of total shareholding to be depledged… It will be a great news if that’s true what they have said today in concall, but until it is officially announced on exchange we can’t take it as done deal…
Disclosure : invested 15% of portfolio 
I think we should stop worrying now and hold on to it for a couple of years. I think we would be pleased with the results.
when will be the demerger date announced? What will be the likely price of lasa on listing. Waiting for this long now.
As per Mgmt. in the concall:
Lasa sales in FY17 = Rs.200 Crs. (FY16 Rs.136 Crs.)
Lasa Margins = 22% [(Mgmt says this should be normalised margins in future (to be taken with a pinch of salt)]
Lasa Debt = Rs.58 Crs. (Rs13 Crs. transferred from Omkar + Rs.48 Crs on its on books)
One can do his own calculations with assumptions on interest, depreciation, tax and what multiples to assign.
Even if it is able to do Rs.20 Crs. of Net Profit then at 15 times this works out to Rs.300 crs of market cap for Lasa whereas Omkar today trades at Rs.375 Crs.
Discl.: Added today and may add more.
Overall good conference call. Helped improve conviction of many investors.
The contribution of higher gross margin products increasing and will increase further. Outsourcing to smaller job work facilities will help avoid capex to some extent and improve ROCE going forward which what Mr. Pravin had said last year. WC days are now 85 days. I am not sure if they can go further down. Let us see.
If they manage their finances well then I do not see issues with the underlying business. In fact the profile of this biz is changing gradually and it will look different creature 3 years down the line due to newer products they have introduced in the last one year. Unfortunately due to all that selling/depledging drama happened over the last year, these gradual changes are out of sight of most people. May be now time for us to focus and track these things going forward …WC situation, debt reduction every quarter, Margin improvement, ROCE improvement. I am more interested now in these things than why they sold their shares last year and betrayed us investors.
Dr. Vijay’s blog post is very good and informative. But he has mostly dwelt on the past in that article and the market knows most of those issues already. Other 50% part of the analysis should be what is happening in the future. Things like New products introduction, changes in product mix and margin profile, competitive intensity, customer loyalty/repeat business, technology & sector trends, operating & financial leverage playing out etc. Because we make money in the future.
But the promoter’s financial decisions need to be watched carefully. Till the CFO is same.
Again some more pledge created. 280000 shares…
Can you pls share the source of data…I could not see in nseindia website
So how much is is the total pledging ? This is very confusing. Was this pledge mentioned in con call?
it comes to about 9.91%( 1.36 by omkar pravin and 8.55 by pravin) @sta
I havent seen the concall details yet so I am not sure if they have discussed it as 10% is still pledged or not. If they have told 10% is pledged then they have added this also to it, as this was created on May 22nd and concall was on May 24th. Anyone who has attended the concall , please confirm this.
We need to definitely check with the mgmt on this…
But wat i feel is…the loan may be for lasa…they may be needing WC…since it didn’t get demerged may be there is a delay in getting capital frm their bankers…hence forced to take loan frm nbfc for short term… ( Pledging is by omkar and not pravin( reason may look crazy but may be a fact))
.aswell there seems to be a rift between pravin and omkar…hence along with financial performance we also need to focus on the pulse of successors… omkar herlekar and rishikesh…because a good business and a bad mgmt is always negative
Why do you say there is a rift between the management
The document clearly states that the purpose of the pledg is the need for short term finance. It is just 1.36 % of total equity. So I dont think we need to lose any sleep over it . It might be because of some funds requred for demerger related activities.1.36 % plus the8.55% already pledged as per the April announcement makes 9.91% of total equity.
@nkgambhir hi. its not about loosing sleep. its just about transparency. Whether the management has mentioned this druing con call.
one more thing, when you copy paste things from valuepickr onto the moneycontrol board, please do keep in mind the copy right issues. @adminph2 would like you to clear my doubts on whether we are free to copy stuffs from valuepickr and post it on moneycontrol without giving the original author his due credit ( in this case the author was @giridesh3.
The disclosure docement clearly states that the pledge purpose is to meet short term capital needs. Moreover in April the total pledge was 8.55 %. The new pledge of 1.36 % makes the total pledge 9.91 %, which is good enough. Hopefully, as this is to meet short term capital needs, it would be revoked after the completion of demerger, when LASA becomes an independent legal entity.
Pledge is by Omkar which most probably would be used for LASA. LASA being demerged co may need some support till financing/banking needs get sorted out. I am not worried.
concall( voice) available on researchbyte
Conference call Details
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/8034ff8b-f474-4936-b905-2bdc146be536.pdf
After going through transcript I think the company is on cusp of next phase of growth. The company is moving from commodity play to speciality play . Even though everybody is excited about Lasa, I think even omkar parent company is on to good path
Disclosure. Invested
