Many of the stocks are down 25% from peak in journey of nifty from 11k to 10k but this stock has given +4 % from peak.so some thing cooking here.please throw light if any one is attending agm
Decent Q4 results. YoY sales for Q4 FY18 are up 19% and PBT up 24%. Turnaround happening, albeit slowlyâŚ
What do you think of the promoters selling the company?
It depends upon who the buyer is. Current management has not done much so maybe change in ownership can bring back the âanimal spiritsâ.
Singer is well known brand for high quality sewing machine around India and can be leveraged to diversify into white goods segment.(which current management is trying but may not be with full intent)
Disclosure - invested from Rs 52 level. No transaction in last 2 months.
Source of this info?
why are you saying that they are not doing it with full intent? I mean their white goods business?
http://bestmediainfo.com/2017/05/we-want-to-make-brand-usha-synonymous-with-kitchen-appliances-says-jayati-singh-of-usha-international/
Singh also debunks the myth that sewing machine is a declining category as they are looking at a 10-12 per cent growth in their sewing machines business.
âIf we look at sewing machines, while people think it is a declining category the fact is that Usha has been playing the role of the category creator. In the last three to four years, we have actually quadrupled our business and this has primarily happened because of the focus on reaching out to consumers through demonstrations, telling them about what the product really does, what they can create and positioning the product as a means to find expression to He creativity. These are the things that we have worked on and over the last two to three years the growth has been good. Despite demonetisation last year, we were relatively flat,â explained Singh.
( Sewing machine business in India still has
lots of healthy growth aheadâŚfar from being stagnant )
Old article(2016)
The sewing machines vertical is estimated to have about 20-25 per cent share in the total revenues. The company is banking on its latest product â digital machines, which are household sewing machines having digital display and modern looks.
Fashion-conscious
âUsers can download the design of their choice and stitch it on their garments. We see a shift in trend here as well, where more and more women consumers are turning to digital machines to stitch or design their garments. Men, if fashion conscious, too want it stitched as per their choice of design,â said Chhabra.
According to him, out of the overall âš800 crore domestic sewing machines market in the country, Usha commands about 70 per cent share or roughly around âš530 crore. âwe grew by three times in the last three years in the sewing segment. This means the market also grew at a similar pace,â he said.
1 Like
On the issue of promoter selling continuously.
While one would wonder why they selling almost every now and then, it is like a tap of a large tank leaking and nothing seems to be stopping it.
If at all promoters wish to reduce stake, they can do so by selling a block.
Why they are offloading slowly.
Any genuine reasoning would help.
Just beacause Shyam Sekhar has bought is no reason. He also liked sintex plastic, which lost nearly 70 percent and many more such.
One has to have own conviction.
If someone knows the possible reason then kindly enlighten.
Q1 FY 19 results
Revenue growth of 12%, flat profits. Company started spending much more advertisement (2.5 Cr for the quarter as compared to Rs 1.4Cr last year). Home appliances now form 30% of the total sales but hardly any contribution to margins . As per segmental results, now home appliances have started contributing positive margin (but it could be eye wash since large expense is shows as unallocable expense)
1 Like
I prepared this note on singer a while back . I hope it helps you get answers to your questions on promoters selling. The curious case of singer india.pdf (1.2 MB)
2 Likes
This is some good work, specially the compilation of retail holding netherland, sewko and their disinvestment spree. I will try to further dig in to what happened to businesses where they completley liquidated their stake.
Keep sharing. Cheers!
1 Like
I had written to the company on the stake sale. This is the verbatim reply
"
_The promotersâ diluting has nothing to do with the performance of the Company . They increase or reduce their stake in Asian countries including India where they hold stake without impacting on the management. _
Best Regards
"
I am personally not convinced of the response though. Others can also touch base with the company. Rajeev Bajaj responds pretty fast.
1 Like
we have already written in June last year and got the same reply. I have personally exited the stock
1 Like
âThe Company is currently pursuing divestment opportunities in Bangladesh and India, has resumed share sales in the market, and will seek to divest its remaining shareholding in Sri Lanka. Pending their divestment, the Company will continue to seek to grow revenue and enhance profitability at both the Bangladesh and India operations.â
1 Like
That strategy is pretty clear to divest more of its holdings in most of its country outlets.
Why they not selling with a block or to some other PE or company itself.
Just to pay dividend is little confusing statement.
1 Like
2 Likes
Posting my views on the company, it seems that there have been quite a number of changes at the helm of the company, so summarized what the company was upto, and what are the new changes that have happened
Disclosure: No position, just tracking as of now
1 Like