The overall results are decent, the increase in operating margins (some of which can be attributed to rupee depreciation) is quite encouraging. Maybe the worst for the industry is behind us.
The EPS for FY19 of Rs. 3.0 can be a possibility.
I am also unclear about the CWIP of ~ Rs. 2,200 cr. What is this capex which is yet to come online. Further, there is an increase of ~ Rs. 320 cr in non-current assets which as per my guess is capital advances. What is this capex!
As per my rough calculation,the cash flow from operations during the 6m FY19 is ~Rs. 700 cr, which is quite decent.
So in nutshell, apart from this certainty on the CWIP, rest all is looking postitve.
Disc:Invested
SJ
Any update on this from those who are invested in the stock? The results have been fair, but the stock price seems to be tanking every single day. Any issues with the management that’s yet to come out in the open?
Sintex’s current Market Cap is almost equal to it’s yearly Operating Profit, which makes it’s seam cheap. But, If one takes out the Interest and Depreciation costs, it’s profits are minuscule. It’s current NP is primarily due to other income which is basically subsidies, which may not be sustainable.
According to the management, they are facing liquidity + collections issues (3Q Investor Presentation). Since they hardly have any cash, they might borrow more working capital as receivables are just going to increase.
Don’t foresee any major improvements in near future.
Disc: Recently Sold most of my holdings at 50%+ loss. Holding a small amount (~ 2% of PF).
Anyone has spoken with management about why they arent cooperating with CARE? CARE Ratings has Given sintex “issuer not cooperating” status since past 3-4 times now.
Finance cost for Sintex industries has almost doubled!! FY19 vs FY18. What happened to deleveraging plan? Unless they don’t bring down debt, nobody will be interested in touching this stock. Management sucks!
So what will happen if the management is in trouble? Will they windup or will other businesses would buy it for cheap? Recently wanted to buy a water tank for a project, the first name to come to the mind was Sintex. I think there is nothing more valuable left in the company other than its brand name.
