I had looked at this company,and went through the previous ARs,to find something the business,after I read that it is the only listed company of its kind.
Looked interesting with the kind of stuff they are into.
However,given this is co.could be from one of the “old houses” of Calcutta,I tried to reach out to one of the majority shareholders based out of Cal.,and didn’t get too many positives about the company.
What I concluded this is one of the companies from the old firms of Calcutta,and majority shares were being bought for some business settlement.
Most of the these major shareholders are part of Big conglomerates and frequently buy each others shares for some reason not shared among common people.The promoters of these big groups(having listed companies),generally have too many business and are not really given to growth of company,expect few cases.
This is being said,I am not suggesting to act on this message,this might turn out to be a multi bagger as well.Being a member of VP just sharing some info for those tracking Pressman.
Saw it at 40 initially,did some discussion and passed it.Hope this might be beneficiary to the ones tracking this.
P.S I have nothing against the promoters or the company.Above is what I could gather.All the best. You can DM me in case,you need to discuss on this aspect.
I had checked with an advertisement source and he told me that most of the clients of Pressman are Sarkari(Govt). the company is not really known for great accounts or portfolio. Their foray into digital advertisement is more talked about than any concrete content. Yes, it is a sole listed company in the field but that is not a good reason to buy (for me). I dropped it off my watch list.
Thanks to your message. I saw it at Rs 21 passed it 2 yrs back. Saw it at
rs 40 passed it 1.5 yrs back, And then finally bought it at rs 60. I agree
with you. They are into digital marketing domain which is an interesting
domain which forms 20% of their revenues currently. That is a high growth
area. The main promoter also runs Sinclair hotels which is quite successful
in the markets. Sometime in Mar 16, the MD decided that he will not take a
salary in the company ( he was earning around Rs 30L pa). That looked very
positive to me as i read it this way - “The co is going to do very well and
my salary will anyway look like peanuts compared to my dividend income and
capital appreciation. So i give up my salary”. And the management is highly
respected in the advertising industry.
In my mind, the stock is yet to be discovered and it is in for very good
times. And being the only listed advertisement company, there will always
be a scarcity premium to it.In my view, the QoQ and YoY nos may be
volatile, but over a 5 yr period they will come out very well.
Disc: Have about 3.5% of my portfolio in this stock. Views may be biased.
Dhiraj:signinficant shareholding drop from Promoters as you would have seen in March 17’.A sign to be bothered about or you feel the business growth(and) story may outweigh this?
Promoter companies have sold their stake individual promoters still hold same no of shares
Pressman Advertising:
Promoters Pressman Realty sold 5.8 lakh shares (2.5%) at Rs 64 each
Promoter Pressman Properties sold 6.60 lakh shares (2.8%) at Rs 62.56 each
Pradeep Kumar Saraf bought 11.60 lakh shares (4.9%) at Rs 63 each
Weak performance by Pressman Advertising during the quarter.
Net sales: Rs 9.8369 Cr, decline of 19% Y-o-Y
Net profit: Rs 1.5685 Cr, decline of 17% Y-o-Y
Only positive part was decline in net profit is lower than sales. On negative side, it is weakest performing quarter in last 6 quarters. The company is not able to report secular growth despite being in service industry. Limited information in AR which does not provide any information revenue break up between Old and new media is also being major constraint.
