@Rajeevji
Were you able to get any insight on the muted sales growth for the last 2 quarters or capacity utilization?
Is the company facing a delivery issue or a sales issue?
I guess one could expect about a 15% p.a. Sales growth over the next 2-3 years. However, it is unlikely that this 15% growth will be linear Y-O-Y every qtr. All that the mgt indicated was that they were optimistic about a double digit growth for the year.
We also need to remove âother incomeâ from the equation when comparing the results to get a realistic picture.
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Whatâs your view on promotors?
Quality of business and management both most important. Please share red flags you identified. Hope, you did lot of research as you are holding more than 1%
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Promoters seem okay from my understanding. Remuneration is slightly high at almost 8 Cr. Additionally Rent and Interest payments to the promoter group is approx 2.55 Cr.
Itâs a little excessive that theyâve purchased 6 luxury cars in the company (purchased on loans from Daimler and BMW Financial Services).
But neither are particular red flags: remuneration is normal for a company of their size and promoters with their qualifications (Rishipal is a graduate from Cornell and Karanpal is a graduate from NYU Stern) and the vehicles arenât a big deal either.
Management has been fairly consistent otherwise (at least since the second generation joined the business).
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Results https://www.bseindia.com/xml-data/corpfiling/AttachLive/b9b31e9a-8d53-4b3f-93a3-9b5ffbaf37f4.pdf
sales flat and profit dip compared to year ago quarter.
disc: only tracking, not invested
Rajeev ji,
Where can we find the shareholding pattern for Top 100 shareholders? Can this data be purchased from the registrars?
You can apply to the Co. for the list of shareholders. Under sec 171, It should be given free to the members upon request.
However, it is prudent to simply write to the Co. & take a follow up, rather than aggressively assert your right. It often works better!
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The latest shareholding structure for the period ending Sept '19 of the Co. showed reduced promoter share holding from 61.18 to 59.88% . On making inquiries with the Co. I have been assured that inadvertently a wrong file has been uploaded & the promoters have not sold a single share & continue to hold 61.18%.
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Hi Rajeevji,
Thanks for querying and sharing. It is however still a bit concerning that stock is falling consistently since Sep 24 and in last days delivery volumes have picked up a lot. Given the negligible DII and less than 1.4% FPI holding, this could well be an insider or operator selling.
No new red flags with the company as such, but we are living in crazy times so who knows whatâs in store!
Yes @onlish2014, it is definitely a serious concern. Pix has been in investing mode for the last many years, focusing on automation with increased robotics. The feedback is that all major investments are done, so why the share is taking such a beating, beats me!
Is it a prelude to poor Q2 results? Weâll know in the next couple of weeks!
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As per the revised share holding pattern, it is clear that the promoters have not sold any shares. They have in fact added a small quantity during the qtr. On making a few inquiries it appears that none of the share holders holding significant quantities have sold either. so the current selling could be operator driven where he sells & himself buys most of the shares at a lower level. In the process retail share holders panic & start selling, thereby creating a downward spiral. This spiral can easily be broken if one big investor decides to call the bluff & starts buying. That is possible only if the big investor is confident that the selling is not coming from a genuine large share holder.
The promoters are not in a position to step in as the trading window is closed till the Sept qtr. results are disclosed, so the operator is having a bit of a field day!!
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Attaching the latest list of top 100 share holders of the Co. as on October 11, 2019. As mentioned in the previous post, neither the promoters nor any of the shareholders holding large holdings have sold in the recent past,
PIX-TOP-100-11-10-19.pdf (15.6 KB)
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Dear RajeevJ,
This is very reassuring, thanks a bunch for sharing!
May I ask how did you obtain this - asking IR?
Thanks!
I gather that Pix is in the process of getting listed on NSE. Can anyone confirm this? If yes, then from when?
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Hi RajeevJ,
How do you get the list of top 100 shareholders, is there any source where we can find list for other companies.
Regards
The Pix promoters continue to increase their stake gradually every quarter. The March quarter saw an increase of about 32000 shares purchased from the open market. There may have been some changes in the listing agreement with the stock exchange, as the Co. did not inform the exchange when the shares were bought.
Director Shirley Paul too continues to add, increasing her holding by about 8,000 shares in March qtr.
The stock has been brutally hammered in the current carnage. Despite a decent performance in the first three qtrs, the stock is available at an earnings multiple of under 5 times and is trading at about .57 times book with a market cap of about 127 Crs.
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Hi Rajeev, I think Co. will also benefit from rock bottom crude oil prices and somewhat biz is diversified as they cater to almost all industries i.e. making belts for Agriculture, Industrial, Automotive, food processing, cement etc etc ⌠No doubt Co. is available at very good valuation
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Pix could also potentially be the beneficiary if the world decides to reduce it dependence on China. As of now about 50% of Sales are exports to more than 50 countries under its own brand. This % could materially increase going forward.
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Most of the worldâs refineries are running at very low capacity, if at all. IOCL and BPCL are running at around 30% odd utilization. So question is how much benefit would accrue to companies such as Pix. Could there actually be a perverse scarcity and hence escalation in raw material prices?
What I meant is not cost of processing but if the refiners are not refining oil (due to the subdued petrol and diesel demand), then wonât it also lead to the shortage of derivate products used as input for synthetic rubber?
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