Maybe one way to play the West Bengal Price increase is IFB Agro which operates in the same segment and is a major player in the state. Offcourse, from their Annual report the exact West Bengal state sales ratio as part of overall sales is not clear. But overall the company is priced for extremely mediocre performance and has set very low expectations.
They are launching in Kerala in September. The CFO had mentioned earlier that it would contribute around 10% of the total revenues in FY18.
I am expecting the margins to improve gradually over the next few years due to multiple triggers:
- Price hikes (taken in the past 1 year)
- Market penetration in existing regions & expansion to new regions (such as Kerala)
- Increasing retail presence (acquisition of retail outlets) and tie-up with Spencers and other organized retailers. The company has presence through around 43 retail outlets which it aims to double in the next couple of years.
- Increase captive logistics infrastructure (bought 100 goods transport vehicles from tata motors)
- Formation of WB beverage association to release some WC and aid net profit margins
Had warned in subtle way multiple times
and some including me have been doing that in not so subtle ways: . Hope that this helped a few.
Be ready for a few lower circuits in this counter now…
So I have a few shares (thankfully less than 1% of my portfolio), came close to selling a couple of days ago. Sadly, didn’t. Don’t think there will be buyers on Monday.
Registered office sealed by Police Authorities of West Bengal
I bought the stock around 42 levels when it was hammered due to it’s presence in SEBI suspected shell company list, it formed around 10% of my portfolio. I booked profit at 62 levels and regretted doing so when it reached 74 levels later as it expanded it’s foot print and thought being patient is important and one should hold for long. But the ultimate lesson I learned now is to never invest in a company who’s promoters have even a slight shady past, though not confirmed to be 100%, regardless of how great the business is growing. Management quality is of utmost importance and later comes everything else. Thankfully, today I hold only 1 unit of this stock which I held for tracking purpose.
Consider yourself lucky one that you did not pay tuition fee to get the lesson. Many of us have gone through this cycle ( I am one if them who paid avfee to get learning). Do not go by anyone even if he is RJ or anyone, follow your own franework and path.
Lucky for you that you exited…like they say, der se aaye par dooroost aaye…
Roy’s Wife arrested
A company is a separate legal entity and its promoter has been arrested. The market price has fallen from 70 to 26. To a certain extent the market price correction is reflecting the bad news.
- How much further can it fall?
- Is the business still operating?
- Where is the company website?
- Where can I get the december 2017 results?
- How much of the scam money went into Pincon?
These are the questions running in my mind. I hope I am not alone.
I feel the debt/equity is very high and the company wouldnt survive if it doesnt operate.
Disclosure: Invested tracking stocks and burned fingers.
I wonder why do we not research the company and avoid discussing about it after the has lost its glory.