Thanks a lot yogesh. Effective comparison. Jain though has multiple lines of business
Always be watchful of companies not paying tax on time even though they show enough Cash on Balance Sheet -
Taxes paid amount in cashflow statement reflect the actual cash paid in that year which should be compared to Current Tax in last year’s income statement. Tax computed on last year’s profit is actually paid in current year. So taxes paid in FY 2017 should be compared to taxes due on FY 2016 profit and so on.
Only part of the tax is paid as advance tax during the year. Since RM Drip is still a small company so their taxes are low.
Correct comparison is shown below.
Source: IPO Prospectus
Tables above shows company is paying taxes on time.
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i have invested in RM DRIP. reason is i spoke to one of the persons whose number was listed on the website. he was reponsible for gujarat but does not work for the company now. he told that the co has already achieved 40 cr of sales in Maharashtra, 12 cr in Karnataka, 3-4 cr in Gujarat and 5-6 cr in MP. there was an issue in gujarat and govt had not approved GST paid on the drip irrigation. that decision was taken by the gujarat govt recently and they have agreed to pay GST on the drip irrigation system back to the farmer.
It is true that the co does not have a superior technology but they have pricing power due to control on the raw material. i see a significant increase coming in the revenues and earnings.
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Hi lifetrix,
Could you understand the raw material that is used and how does the company have a control over it vis a vis their competitors?
Is everything alright in RM drip ?
Does anyone know how can I buy RM Drip stock through ICICIDirect? It does not seem to find the stock code perhaps due to listing on SME platform.
ICICIDirect does not allow to buy SME stocks. I communicated with RM and customer care to allow me to buy this stock, but they told its policy of the bank to restrict SME stock trading. You need to open discount broker accounts like Zerodha, Upstox to buy SME stocks.
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hi Pranav,
Please continue giving your views. It is very useful for novice investors like me. its like alarm for us whether to enter or not in such stocks. Thanks again.
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Thanks Sandeep - appreciate your response!
I think you can buy SME stock at the IPO stage through ICICI Bank. Here is a video explaining the same
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Can someone post the file with results for FY18? I can only see the major headings at websites.
It appears that the revenues during the second half of FY18 were 21 crs only. So total revenues for the year ~40 crs. This is much lower than what people have been posting based on their channel checks. Either the channel checks were wrong or the company is messing with its numbers. I would think that there is higher possibility of the latter. After all, yet again, the raw material cost of the company ~55%, better than that for the best brands!
Very poor results in H1 2018-2019. Could not find any reason for the poor sales, which is leading to significant losses.
Disclosure: Invested
Latest Financial Results
Oct 22, 2018 11:03 hours
Company R M Drip and Sprinklers Systems Limited
NSE Symbol RMDRIP
Result Period 01-APR-2018 to 30-SEP-2018 (HY)
Result Type Unaudited, Cumulative, Non-Consolidated, Non-IND-AS
Non Banking
| Description | Amount(  in lakhs) |
|---|---|
| Net Sales/Income from Operations | 702.22 |
| Other Operating Income | - |
| Increase/Decrease in Stock in trade and work in progress | -162.57 |
| Consumption of Raw Materials | 577.35 |
| Purchase of traded goods | 0.00 |
| Employees Cost | 127.21 |
| Depreciation | 71.32 |
| Other Expenditure | 297.57 |
| Total Expenditure | 1000.05 |
| Profit from Operations before Other Income, Interest & Exceptional Items | - |
| Other Income | 4.46 |
| Profit before Interest & Exceptional Items | - |
| Interest | 89.17 |
| Profit after Interest but before Exceptional Items | -293.37 |
| Exceptional items | 0.00 |
| Profit(+)/Loss(-) from Ordinary Activities before tax | -293.37 |
| Tax Expense | -3.61 |
| Net Profit(+)/Loss(-) from Ordinary Activities after tax | -289.76 |
| Extraordinary Items | 0.00 |
| Net Profit (+) / Loss (-) for the period | -289.76 |
| Dividend (%) | - |
| Face Value (in ) |
10.00 |
| Paid-up Equity Share Capital | 669.00 |
| Reserves excluding Revaluation Reserves | - |
| Basic EPS before Extraordinary items (in ) |
- |
| Diluted EPS before Extraordinary items (in ) |
- |
| Basic EPS after Extraordinary items (in ) |
- |
| Diluted EPS after Extraordinary items (in ) |
- |
| Public Shareholding (Number of Shares) | - |
| Public Shareholding (%) | - |
| Promoter & Promoter group Number of Shares Pledged / Encumbered | 0.00 |
| Promoter & Promoter group Shares Pledged / Encumbered (as a % of total shareholding of Promoter and Promoter Group) | - |
| Promoter & Promoter group Shares Pledged / Encumbered (as a % total share capital of the company) | - |
| Promoter & Promoter group Number of Shares Non-encumbered | - |
| Promoter & Promoter group Shares Non-encumbered (as a % of total shareholding of Promoter and Promoter Group) | - |
| Promoter & Promoter group Shares Non-encumbered (as a % total share capital of the company) | |
Another bad set of results. Anyone has any clarity on what has gone wrong with the company for one entire year now. Revenue has now dipped to 50%
I spoke to the management of the company, following are my key take aways:
- The sales of 15crs out of 22crs was reached in just 5 months period rest of the time some window he talk about remained closed. I dont understand it fully.
- They have made changes in the sales team to ramp up sales.
- They are giving unofficial guidance of sales of 200crs in next 4-5 years
- They are very keen for investors to visit their plant and have a look themselves.
I am very keen to talk to people who are interested in visiting the plant.
Disclosure: Invested since IPO
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