POKARNA LTD ( Stock opportunities )

(sivaprakasamp) #367

Yes agree, such businesses command a multiple of not more than 10x.

However the current DER for Pokarna is very high. If this expansion doesn’t payoff then the shareholders will be left with almost nothing.

(008shailesh008) #368

@sivaprakasamp just a quick query… What’s DER brother?

(sivaprakasamp) #369

It’s currently at 2.8 bro. However after this Capex, DER should shoot up to 5.6x… Just that the Quartz business is high margin and has good cash flows. Payback is approx less than 3 years.

(Vivek) #370

you are asking what DER stands for? if yes, then its Debt to Equity Ration

(008shailesh008) #371

Thanks for explaining, indeed I was asking this only. Thanks to both of you :slight_smile:

(Varadharajan Ragunathan) #372

has some good data points.

(sivaprakasamp) #373

Great note. I have a few basic questions. Does Quantra sells as an independent brand in US? I am wondering after the tie up with IKEA, will they eventually sell to US via IKEA. .

(Mridul) #374

Idea tie up is just for india at the moment.

Regarding quantra…in us…it’s all through dealers.

(sivaprakasamp) #375

Great, thanks Mridul

(Mridul) #376

One of my friends who deals with pokarna told me that this is a one man show (Mr. G C Jain) and that there is no succession planning. On pokarna website, apart from g c jain, two other people from the family are there in the mgmt team. Probably one is the brother of g c jain and the other jain is the son?

My friend said …just exit if mr. g c jain ‘retires’ from the business (whenever, for whatever reason).

Anyone who is following the company closely…how involved are others (apart from g c jain) in the overall operations? Has anyone attended their agms? Succession planning is important and is one of the most overlooked things in companies as far as inveting is concerned.

(nil_71) #377

Like to know how it will affect Pokarna

(Mridul) #378

Granite is a luxury item and is fairly put in 28% slab. In some states, sum of all taxes and duties was already around this mark. But in some others like Rajasthan, it was under 3% slab. So yes, stress for these players will be there. I am not aware of the tax slab for AP pres GST.

(bkasal) #379

Promoter/MD selling…

(bkasal) #380

Thanks, Varadharaj. Good data points.

(008shailesh008) #381

@bkasal I am not able to track this announcement anywhere on NSE website. Could you please post the link from where you took this screenshot.

(chetanb) #382

@bkasal promoter rahul jain sold just 300 shares o 5-6-17 and nothing else after that.

(bkasal) #383

Yes. But it may be for reasons like - a) overvalued; b) challenges in biz which Pro might be knowing or c) Pro need money for personal consumption… If © might be ok…
Enclosed…8139c9cb-9772-4e0d-a3cd-cea1ac1ce6a3.pdf (186.9 KB)

(chetanb) #384

if a or b, he wouldnt sell just 300 shares.

(bkasal) #385

possibly, yes… hope so…

(hamed) #386

Any news on sale of retail division? How much of impact will it have on EPS ?