I had mailed same concern to the company before 5 days but sadly didn’t got any reply.
Sheetal Cool Products intimates of fire in Namkeen Division at Amreli plant - This shall not have much impact on September 2018 results given the small size of their snacks division.
HY 18 -19 financial result of SCPL
The profits for H12019 has been dented because of exceptional item (4.3 Crores) due to fire. Earlier they said there will not be much impact, then how come it had significant fall in Net Profit?
- Are the plants not insured to provide cover?
- Is this a matter of promoters using an excuse for some other cover up?
Any insights or views on above will be helpful.
Discl. Invested from IPO
Hi Raj. I can understand following points due to impact of fire.
- The loss due to fire shall be complete loss of machinery and other material probably packaging, raw materials, input etc.
- Plants must be insured but the same shall be shown in statements once the claim is approved and credited.
Discl: Personal Views. Not SEBI reg RA. Have not invested till. But Doing research to understand company more in detail
1 Like
Hi is there any update regarding the Insurance claim
The fire incident has dented the Half yearly profits very badly
Disc : Invested around a year back
Sheetal suffering due to fraud committed by its old LM Guiness sec which has been banned by Sebi due to selling shares of its clients without their knowledge. New LM Pantomath has been appointed.
Seems core business of Ice creams doing well n now very well supplemented by the Namkin business which is now producing init new plant for last 4 to 5 months making Scpl a 12 month play.
Views invited from others Vpers who track it specially on reach n response of its icecream n Namkin n other products. Insurance cos take their own sweet time in settling of claims
Vivek, there are 2-3 things which reflect the quality of the Promoters are
- In Aug 2018, first week, there was a news appear in the local news channel regarding IT raid but there was no disclose at the exchange at all. I had mailed them but no response from their side. https://www.youtube.com/watch?v=iQgqemw9f_s
- In 15th Aug 2018 there was a fire at Namkeen Division.
First week IT Raid and 3rd week fire , ?something fishy.
- Crisil : Issuer not cooperating.
During my last Diwali (2018) visit at my native place I shows much more numbers of it’s outlets and advertising hoardings through out my route. And we brought it’s 10 rs butterscotch cone during family get to gather in bulk quantity at two occasions. Everyone were satisfied with the price vs quality.
I had not posted my experience of last Diwali visit here because I had already sold my whole holding in the month of Aug 2018 after hearing about the raid and fire.
6 Likes
Vivekji
I would like to point out my observations
There was fire incident but the positive side is they were able to restart the Namkin production very fast
I am from pune and i had observed many shopkeepers selling Sheetal icecream but some of them have shifted to Dairy Day in the area where i live its a negative thing as they are not able to retain the retailers due to supply issues
One of a Distributor has stopped Selling Sheetal and shifted to some local icecream from Gujarat the cost is same but the quality is not as same as Sheetal this is negative and positive both as quality is not like Sheetal but negative due to closure of Sheetal distributor
In Dec 2018 promoters have increased the stake so this is a big positive
The new icecream plant which was mentioned during IPO has come or not there is no info
Recently they started selling Sheetal icecream and namkin in many railway stations in Gujarat is a positive step
They started Selling Sheetal products in Nagpur again a positive sign
Disc: Holding since a year in family portfolio
3 Likes
Hi,
Came across this company due to a screener screen. Does anyone still track/own this company? I have gone over this thread and also their latest AR. A couple of things which stand out:
- High amount of debt.
- Large depreciation in 2020.
- Employee costs were only 1% of sales in 2016. How is this possible?
- Manufacturing costs in 2020 were 0%! This might be a bug on the screener end, but definitely needs to be understood better.
- EPS was quite high in 2020 compared to FY19 due to exceptional item (fire related) in FY19 resulting in 1 time hit to P&L. However, the fact that the EPS has not gone up by same amount in FY20 to me implies that they do not have fire insurance for their factories and equipments and goods. This is a key risk wrt investing in this company.
- They have still not released the Annual report for FY20. This seems surprising given that it is september. Even though this year has been disruptive due to covid, I have seen a couple of microcaps I own released AR so it is definitely possible.
Resources: Q4-FY21 results, AR for FY19.
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Something worth adding here is that they had sought permission from RAC to hold AGM before end of calendar year, which they have been provided. My suspicion is that the annual report would come near the time of the agm.
This is specially surprising because the fy19 annual report contains this information:
“9. INSURANCE: All assets of the Company, including Building, Plant & Machinery, Stocks etc.,
wherever necessary and to the extent required, have been adequately insured” on page 23.
Do note the vague wording for the insurance taken. I am also studying another microcap company sakar healthcare which contains much crisper language regarding insurance:
“23.2 INSURANCE:
The Company’s properties including building, plant and machinery, stocks, stores etc. continue to beadequately
insured against risks such as fire, riot, strike, civil commotion, malicious damages, machinery breakdown etc.”
just a naive question, when i try and buy a small quantity of shares of Sheetal cool, it gets rejected. I asked icicidirect and their response was it has to be bought in lot and the lot size is 800… why is it like that ? for SME do we have to buy in such big lots ?
request the boarder’s help in this regard
SHEETAL COOL PRODUCTS is ITC of SME Stocks.
This stock has not participated in bull rally. Important points from AGM
Sheetal cool products SCPL SME Stock
AGM MD speech highlights. ( as I understood)
- 100 new distributors in current marketing environment.
- Ventued into Sheetal Cow Milk and milk products.
- Exporting to US,Aus,Singapore,Africa . Three more countries to be added in current fiscal
4.Present in MP,MAH,Guj,J&K markets extensively now . Entering UP and Delhi this FY 21-22. - In tie up with Oil majors and setting up Sheetal cool Bars in highway petrol stations .
6.Getting more traction among Franchises. - See good growth in coming days and Confident of profitability.
Much ignored stock ,conservative Promoters.
5 Likes
Promoter quality is of concern
Could you explain your reason behind that… I am recently tracking this company
Many issues can’t be said in public forum
Now that a renowned entity has taken over 1% stake on 28 Sept bulk deals , the stock should get unbiased look once again.
The company issues monthly newsletters which 8s sort of unheard of in listed companies .
Let’s see how it unfolds hereon.