Talwalkars Better value Fitness Ltd - Good fundamentals


(MG) #66

Company clarified this some time back - copying it directly from my notes below

  • Majority of debtor corresponds to corporate memberships and EMI schemes and some initial credit period to franchisees – wherein revenues are not received upfront

Cheers!


(Parag) #67

The company has filed an application with NCLT for spin-off on 28 April 2017. It is all-most six months, and there is no news yet.

In Q1 and Q2 con call, the company has said the same thing- Awaiting information from NCLT. The company is saying that nothing is pending from their side and the ball is in NCLT’s court.

Does anyone know how much time NCLT takes for approval and does six month is not little longer duration for approval?


(onlish2014) #68

It could take 6-8 months. There is a very informative blog by Antinvestor on this topic. Some screentshots below:

Blog post: https://antinvestor.wordpress.com/2017/07/10/special-situation-investing-and-tube-investments-of-india/


(Parag) #69

Thanks, @onlish2014. The link provides good information about demerger business.


(achal) #70

Management has revoked pledge on few shares. Good sign on behalf of management.


(rskothari) #71

Capital First has also increased its stake in the Company.

Disc: Invested.


(Parag) #72

It is more than 45 days for Q2 FY18 (Sept end), but the company has not released any results yet.
Any idea what are the SEBI regulation, if they are, wrt to publishing quarterly (e.g how many days within which the company must publish it’s result)?


(Hardik) #73

http://www.bseindia.com/corporates/compliancecalendar.aspx


(Parag) #74

Thanks @hardikca.
As per the BSE compliance web site " The listed entity shall submit quarterly and year-to-date standalone financial results to the stock exchange within forty-five days of end of each quarter, (other than last quarter ) along with Limited Review Report or Audit Report as applicable. "

It is clear from the above guideline, the company must report quarterly result within 45 days, but it more than 45 days since Sept quarter ending, Talwalkar has not published any results. Even the company tool more than 45 days to publish Q1 result.

As Q2 is not their annual result time, so what could be the reason for SEBI allowing them more than stipulated time to publish result (I am being curious)?


(Alphin) #75

Because of IND- AS accounting standard change these companies have been further given extension of 30 days.


#76

Talwalkars joins hands with Mickey Mehta’s 360 Fitness.

http://www.moneycontrol.com/news/business/companies/talwalkars-better-value-fitness-inks-jv-with-mickey-mehtas-360-wellness-2445703.html


(Aditya Mehta) #77

Demerger approved by NCLT

http://www.bseindia.com/xml-data/corpfiling/AttachLive/a242a678-3cc4-47b2-88ec-115a633d49c1.pdf


(stockhunter) #78

After the approval of demerger by NCLT how long does the process usually take , any inputs?


#79

Saw on BSE, Talwalkars has incorporated Power World Gym, as whole - subsidiary in Srilanka, which was kind of hinted in 2016, where plan was to expand in 2016 as well. What is your view on this news?

http://www.bseindia.com/xml-data/corpfiling/AttachLive/61915aaf-72c6-4c50-8692-42ffc1a56952.pdf

https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/talwalkars-to-open-100-gyms-in-sri-lanka-to-invest-rs-100-crore/articleshow/51238167.cms


(zygo23554) #81

I continue to find this very strange. Why go bonkers on Sri Lanka market when you have a huge untapped market in your home country? Surely the promoters and management have the pulse of the Indian market better than the Sri Lankan market. If I put on my most pessimistic hat and look at this, can’t think of a better way of siphoning off a part of the 100 Cr!

I have stayed away from this counter for these very reasons - some of the moves by the management just do not make sense to me. Announcement of opening 20 centers in Bangalore on a single day, investing 100 Cr into beefing their Sri Lanka operations, getting into a lifestyle club business and then doing a corporate action to demerge part of the business.

I am obviously biased in my views but I would do my due diligence very very thoroughly before investing in this.


(Marathondreams) #82

I have invested in this company and remain invested for 4 years only to see pedestrian returns for my investment exactly due to reasons mentioned by you. Looking at quarterly results, it almost feels like “choreographed” numbers… never shock nor pleasant surprise… always around 20+% growth. Company has dodgy related parties and their HiFi model leaves lot of doubts about the beneficiaries of these Gyms… Owners reduced stake few years back, asset deletions on annual basis is always a cause of concern and suspicion… Too many red flags so ultimately I sold out all of my positions around 1 year back… so happy with my decision :smile:


#83

Just noticed on BSE that one of the promoter Vinayak Gawande has released 440,000 pledged shares from Capital First and another promoter Vinayak has created pledge for 140,000 with Catalyst Trusteeship, which means overall they have reduced their pledge. Now, out of curiosity, i wanted to understand in which all scenarios promoters would do two subsequent transactions in this manner.

Invested with 4% of portfolio.


(Ranjan K) #84

Yeah, this seems to be a mix of cash + accrual which IMO is not correct. But there must be some loophole which they are using for their benefit. Whatever is collected for another period should rest as unearned revenue in the balance sheet. As and when service is rendered, they can book revenues and reduce liabilities by the same amount. For that matter, even if one collects full fees at the start of the year for one year, revenue recognition should be phased out through out the year.


(Aditya Mehta) #85

How come they have transfered 71% of assets to lifestyle business.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/3b9b0281-5f61-4b98-bc50-b00268e7b4bf.pdf


(nirajshah85) #86

Came across this article on their demerger of gym and the lifestyle business last year.