Did you guys notice that members of the Jain family have sold off shares worth about 15 Crores @918 on 5th Dec. What to make of that?
It’s a transfer of shares from non executive promoters to the MD. Not a sale afaik. pls check the full filing. He has consolidated his holding - that will mean lesser free float in the market.
CRISIL has upgraded its rating on the long-term bank facilities of Pokarna Ltd (Pokarna; part of the Pokarna group) to ‘CRISIL BB+/Stable’ from ‘CRISIL BB-/Stable’, and reaffirmed the short-term rating at ‘CRISIL A4+’.
You can read the entire Rating Rationale from here.
Pokarna invited retail investors for factory tour.
Its a good and welcome development. They have a nice product but are struggling to expand the market base. US has lot of demand, I see China continues to send more and more Quartz stone. Why cant Pokarna do? If they end up in Ikeas US stores, its a great. Helps in brand visibility. The management has been much better in last 6 months. Incremental changes though.
How does it benefit Pokarna? as they are already working at almost full capacity utilization and no new capacity is coming up in atleast next 2 yrs ?
Disc. Moved out of Pokarna a month back and this news made me interested again.
But it is clearly mentioned in press release that it is partnership with IKEA India. So how it can apply to iKEA USA stores
If you read the entire statement, there is a mention that Ikea India also does a job of sourcing to their foreign offices.
I went through whole thread and thank you guys for outstanding contribution and efforts. One question from my side:
What I gathered from concall and your valuable discussion is quartz capacity utilisation is nearing peak and now they have entered in to contract with IKEA. What do you think how will they be able to capitalize the same.
This further shows that Pokarna is operating at almost max utilization levels.
I’m sorry I don’t follow, could you elaborate a bit?
look at the export from India to US. Pokarna exports most of the Quartz to US and there is a meager growth in volumes but overall growth of quartz surfaces is quite high. I don’t have any doubt about their product (The reason I bought it at the first place) but I have a doubt on the management strategy and their integrity. I hope that these issues get resolved. I am happy in buying 50 % extra rather than blocking my money for any more time
This is my first post on this wonderful forum. With respect to Pokarna, I have seen a number of forum members posing questions on promoter integrity (either historical or current). I would like to understand the exact nature of these allegations about promoter integrity. In my opinion/analysis I do not see any outlier behaviour of the promoters (in terms of integrity) that poses as a red signal.
Disclosure: Pokarna is a significant investment of my concentrated portfolio…
Pokarna announces increasing capacity in their Quartz division.
Much awaited news.
Very pleasing! Could have been earlier. I kept hoping that they will scale the capacity of Quartz slabs sooner, never the less, they realized. I still think Quartz stone has a big market in USA. Considering the talk of construction and infra boom in US and the corporate governance/internal issue CaesarStone is going through, Quantra could have easily upped their market share. They are about 2 years behind. The company claims Quantra slabs are far superior to Chinese Quartz slabs, but China ships 10 fold more than Indian Quartz slabs, You can imagine the size of opportunity. I think the wisest thing they could do is sell the apparel business, monetize some of the Granite quarries and just become a pure export focused Quartz Slab player. It can make the promoters and shareholders a lot wealthy, I am still hanging in here.
Ins’t it highly capital extensive project? pokarna already has 230cr of net debt + now another 250cr debt for capex. Networth is only 130cr!
You have to look at their FCF. The cash flow is very high, only they waste some of it on their apparel business and do capex in their granite. The capacity will take 2 years to come up and we will have ample time to add it during next six months. I am happy with this development.