3.5 crores is huge… its almost 1.7 times its standalone quarterly profit
Currently, Prima gets 27.21% or Rs 35.15 cr of its revenue from Cameroon plant, this will increase to Rs 66 crs in rev, resulting 12% increase in yearly sales and 25% increase in overall yearly profits for the next 2 years.
Has anyone validated their overseas operations? A simple Q such as whether they are genuine? All we have is the management’s feed on this.
It reminds me of Karuturi Global’s Ethiopia operations. No one knew whether it was genuine or not. I guess no one still does, or cares.
I had invested in karuturi at that time, and am invested in prima this time. But this issue keeps bugging me.
They are receiving dividends from Cameroon and their accounts in India are audited. It is real cash.
!)Prima JV Partner is Dee-lite group having operations in Cameroon & Nigeria http://www.deeliteglobal.cm/
2)Dee-lite group had got distributorship with Parle , Bajaj Motors http://www.businessincameroon.com/companies/1109-5619-indian-group-bajaj-to-develop-at-least-twenty-mechanical-workshops-in-cameroon
3)Prima Dee-lite JV is making profits and sending Dividends to India a) 1.6 Cr 2015 b) 4.82Cr 2016
4)I get this when I search plastic chair on one of top e commerce portal in Cameroon https://www.jumia.cm/no-name-chaise-en-plastique-sans-accoudoir-bordeaux-38256.html
5)Dinesh PanjabiOwner, Dee-lite group,Cameroon & Nigeria LinkedIn :: https://www.linkedin.com/in/dinesh-panjabi-08165023
6)Official list of Plastic Manufacturer from Cameroon Govt http://www.ambacamtunis.com/fr/index.php?option=com_content&view=article&id=12&Itemid=15 Plastic Manufactureres Cameroon129.pdf (13.4 KB)
7)List of Top Manufacturers and importers from Cameroon pub_f23d18b73.pdf (2.1 MB)
8)Some links regarding Prima from Cameroon Websites
As the company received dividend on Dec 21st from its JV, will it be counted as a profit from other income in upcoming Q3 results?
ideally…yessss it should get counted
Any idea when AP plant and South America expansion gets operational ?
this FY for AP plant and coming FY South America
Top Line 24.63cr (Dec '16) vs 31.75cr (Dec '15)
Net Profit 3.80cr (Dec '16) vs 3.03cr (Dec '15)
LN bro - What are the rules for publishing consolidated results every qtr here in India? Can we request the company to do so? Why do companies tend not to publish consolidated results. Standalone doesn’t give the full picture.
The top line of Dec 15 quarter had an one time order of 6.89 cr. So this has to be taken into consideration. Also the dividend from JV has been counted as expected for the last quarter.
Higher tax paid in this quarter…
the consolidated is not possible as their JV has a Jan-Dec FY.
there’s a note explaining this, higher tax.
How Will the market take this result ?Guess there was too much expectation from this quarter since there will be dividend income adding on to bottomline…But the results seems to be pretty decent to me…
I personally hope the market would react badly to this …so that I could add more
Prima trades at 20x PE, which is reasonable for a company posting 20-25% growth yoy. I expect the company to post ~13-14 Cr PAT con a consolidated basis for FY17, which implies reasonable valuations at current price. Hence we can see some upside IMO.
Prima announces Commencement of Commercial Production / Operations at Ongole Plant.
Prima plastics starts commercial production of its Guatemala ( Central America ) plant from 13th Mar 17. It has a capacity of 2250 MT which can be expanded to 3000 MT is needed. With global crude prices struggling to cross 55 USD/ barrel, plastic end users such as Prima plastics will benefit immensely. As you all may be aware, Warren Buffet had recently loaded up on US airline stocks…His logic - crude prices will remain subdued for a long long time to come. All companies using crude derivatives as raw material will have a kicker to their margins due to this. The story has just begun.