Is the receivables high due to its nature of business. Export oriented and Govt sector? In the last quarter, the receivables were due to uncertainty regarding EXIM regulations.
Yes, even big companies like Mahindra logistics though operating in domestic segment, facing the same problems.
In this business, most of the investment requirement is in working capital, that too in receivable.
Assets required are very less and no inventories
However, receivables increasing more than net profit is clear reg flag, but as it is the case for all companies in the segment, we can’t help it. We need to wait for recovery in the business segments.
Logistics sector will be benefit from this move, thought the trucks gonna cost a bit more, but the total cost of ownership will come down.
Any one know about the capex plan or somthing there’s WIP of almost 8 odd crs.
Post your views about it.
Tracking this company. Still not invested
They recently opened own corporate office at Delhi
I did a high level analysis of this Company in Dec, 2017 and did not consider it worthy of investment.
Following are the red flags due to which I rejected it at an overview level itself and did not proceed to do a detailed analysis:
- Operating Cash Flow negative (and Fin CF positive) over the past 5 yrs. Receivables, at 82 cr, are 75% more than NW and 5 times of PBT. Margins, at around 3%, do not warrant such high receivables. Receivables (CAGR 40%) have grown much faster than Sales (25%) and Profits (22%) over the past 4 yrs. Receivables, at 100 days, are double compared to Mahindra Logistics that is in similar busiess.
- Several privately owned group entities are in similar businesses.
- MD sought approval of Rs 2.4 cr salary for FY18 (more than double the FY17 salary and about 15% of FY17 PBT.
- According to sources, Mgmt could not manage FY17 AGM well. It lasted only 10 min and shareholders’ queries were not answered.
Agree with your findings, I did hold Tiger logistics for some time and entered without doing a due diligence which was due to my limited understanding of B/S, Cash flow statetment
Later came out of it with a small profit.
I attended the 2017 AGM along with @Gaurav152 . 2-3 shareholders created raucous in AGM. All these people buy single stocks and come to AGMs to bully managements and extract some money!!! Other shareholders tried to calm these people down. Management had no option but to go ahead with the proceedings.
We reached out to management to ask queries after AGM proceedings but they asked us to write to them. Certainly they could have managed the situation better or atleast wait to respond to genuine shareholders’ queries.
Do you have proof that these raucous shareholders held only 1 share? Also, what prior instances do you have to show that harassment at the AGM leads to a payout for these shareholders having 1 share?
Dont know the exact number of shares they hold, but i attended 3 AGM’s last year in Delhi including CSL finance, Aryaman Financial & Tiger logistics…Same group of ppl headed by a Sardarjee showed up in all and caused raucous. Try and attend a few small cap AGM in delhi if you find time,you’ll find the same.
Perhaps these guys are hired by management to suppress genuine investors queries. I am getting feedback that this is happening on a regular basis for past few years. Let’s get in touch and take it to a logical conclusion.
Dear Boarders (esp those on the concerns camp),
Do you forsee a major corporate governance issue which means profitability numbers are completely rigged up? or it is just few red flags to watch out? I have invested looking at growth track record, high ROCE and prospects in logistics industry and Tiger has a small revenue base of just 300 cr.
From some sources, it is clear that they are doing good job in branding and visibility as also presented in below article which was sent before on this forum:
I am pondering if it would be worthwhile waiting for few quarters to see if growth continues as Demonitization and GST shocks are behind us.
You are right these are all management engineered gam disruptions to avoid queries from genuine shareholders.