Prima Plastics


(J2EE Professional) #63

promoters would hardly have time to talk to individual investors until and unless you have strong stake in the company. Also, replied are always supposed to be curt, why would anyone write more than what is required? Without attending AGM, passing a quality remark against management is not the best idea. Anyways, I am not here to defend anything and believe strongly in the company, its management and its future :slight_smile:


(Sagar Bhadury) #64

Hi!

Do you think they can increase their market share in the coming years , considering the untapped markets of South and West. Will it be able to compete with nilkamal , Cello or Supreme in the long run? Are they doing enough marketing ?


(J2EE Professional) #65

that’s what the expectations are …they are already the third largest and with the product expansion they are looking good. but let me also add that its their overseas business and the expansion in that part that makes me even more bullish


(Sagar Bhadury) #66

Even if its the 3rd largest player,its way too small compared to the first 2. The company has a market cap of 84crs. I think the financials look good in terms of low debt and growth for the last 3yrs but return ratios as not very impressive…Although I see that cash flows are healthy…Can you tell me what are the products they primarily manufacture and their current market share in India. I would like to concentrate on domestic consumption rather than exports which could be the key driver of growth in the coming years if they grow…


(J2EE Professional) #67

i hope you have gone through the thread and their website, its available there.


(mukul aggarwal) #68

Hi All,

Any updates from the AGM yesterday?


(mukul aggarwal) #69

Fellow Value Pickers,

Does anyone have any idea about the recent run-up in the stock? Any news that I have missed or some big investor has entered into the stock or it is pure speculation?

Any views are invited.

Thanks,
Mukul


(vinamra chaware) #70

Today Mr Shyam Sekhar write wonderful blog on To sit patiently and watch time pass by.


After reading his last 2 days tweets and blog I prepare Valuation Model prima_plastic_VALUATION_MODEL.xlsx (35.9 KB) Excel by considering various scenarios
it can be used for various stock by changing SALES figure in RED color cell
Note:-
I hold at much lower level
I am not sebi registered research analyst
This excel is only for information
I am not recommending Buy / Sale on any stock
I am not responsible for any loss arising out of any
information,post or opinion appearing on thisinfo.
Investors are advised to do own due diligence and/or consult financial consultant before acting on any such information.
Author of this Excel is not providing any paid service and not sending bulk mails/SMS to anyone.


(J2EE Professional) #71

i think there are far too many triggers in place for strong growth to continue in future. combined with a solid balance sheet and ever improving ratios, the stock was actually undervalued for far too long. The market seems to be realizing its potential now, especially on back of improving standalone numbers.


(Amit) #72

Number tells the Story for Prima Plastic…

Q3 number

Sales Growth 44% 28.9 cr
PAT Growth 326% at 0.71 Cr Vs 3.03Cr


(J2EE Professional) #73

totally… although the numbers are boosted by one time order, even after removing that, the numbers are simply great… both topline and bottomline. further 1rs dividend is icing on cake. we saw wonderful cash flow in last year’s AR (standalone) , even though it had just 2 quarters of ACP closure. I am anticipating those standalone cash flows to pick up huge steam this year…its exciting times now…this and next FY would be really good for the company and now its about time that big guys start noticing the company :slight_smile:


(Amit) #74

Can we put big Money in this company ? like 8-10% of portfolio holding kind ?

Right now it’s 3% of my portfolio.


(vinay ambekar) #75

@j2eeprofession_

If the one time order of 6.89 cr is excluded, the sales growth works out to 6.7%. Not great. But not bad either in today’s environment.


(J2EE Professional) #76

@sammy11 if 6.7% sounds ok to you, then wait till i tell you that the growth is 20% and not 6.7%. It looks you have simply subtracted 6.89cr from this quarter’s earning and compared with last year’s revenue. This is not right because last year, Prima’s revenue also included its revenue from its ACP division which was around 2.51cr. Since the ACP division was closed in Jan 15, this quarter’s results does not have any ACP revenue. So a right comparison would be comparing last year’s Plastic moulding furniture division’s 18.49cr vs this year’s(29.3cr) revenue minus 6.89cr which gives a growth of 20%.

What’s more, this quarter’s results actually include an inventory loss of 0.83cr of its closed ACP division and if that was to go, the margins would have been even better.

Just like you, I am sure the big guys would not be digging in the results, and therefore, for people like you and me, here’s the opportunity to bag this company at reasonable valuations. For march ending quarter the company would declare consolidated entity’s results and that is going to be stellar. Also, i appreciate the communication of this small cap where they have clearly declared about the one time order and it speaks volumes about the transparency of the management.

Its simple right, staggering cash flows, zero debt, expansion coming from internal accruals and on top of it, increasing dividends.


(J2EE Professional) #77

i am nobody to advise you on your portfolio man… All, i can say is that i am very bullish of the prospects of the company and with the kind of growth that the company is seeing and kind of growth levers in place, bumper cash flows, zero debt, increasing dividends i would not be surprised to see a 50-70% growth in market cap for next 5 yrs and with increasing dividends giving a downside protection too… Let’s see now.


(vinay ambekar) #78

@j2eeprofession_
Very valid point. I had missed that. Thanks for informing. I stand corrected.


(J2EE Professional) #79

That’s fine sir…Lets hope you are not alone doing this mistake :smiley:


(Akshayag) #80

I don’t mean to barge in on the conversation. But also wanted to point out that raw material prices must have fallen substantially compared to last quarter. So on a like to like basis topline would have actually fallen below 18cr considering same volumes. I was actually prepared for a sub 18cr quarter. But the results just flat out blew me away. Even without the one time order it’s a phenomenal quarter for me.


(J2EE Professional) #81

Raw material prices were cut just 5% according to my conversation with the CS a few weeks back. Could you share your source of information of substantial raw material price cut? When did that happen - i mean the timeline.


(Akshayag) #82

Frankly speaking it’s just a guess based on substantial drop in crude prices and other polymer prices. So if you have info from cs I think its best to go with those nos.