White Organic Agro Ltd - Patanjali and organic food play


(Ramesh kumar) #22

The convertible warrants were issued in the EGM meeting dated 22 Nov 2016. However I could not find the price at which they will be convertible either in EGM proceedings or annual report.
Wanted to know the price of conversion and how would it effect the minority shareholders.


(Anirudh72) #23

I remember reading somewhere that price of conversion was Rs 30.5 per share


(Anirudh72) #24

Promoters had infused 15 odd crores and had got 50 lac warrants in return-price of conversion was to be 30.5/share


(Ramesh kumar) #25

Q3 results out Standalone(Figures Q3FY17-18 Vs Q3FY16-17)

Revenue 11.71 Cr Vs 9.02 Cr
Net profit 0.24 Cr Vs 0.02Cr

Q3 results Consolidated(Figures Q3FY17-18 Vs Q3FY16-17)

Revenue 48.54 Cr Vs 9.33 Cr
Net profit 3.60 Cr Vs 0.09Cr

Good results continue. I was hoping for media release/investor presentation this time when company convened a board meeting to discuss strategic expansion plans. Lets hope some concall will be organised soon.


([email protected]) #26

Keep an eye on receivables…that will help understand…whether cash is also coming in along with sales…also eye on promoters equity…


(Satya Prakash) #27

My only question is that why are promotors not buying more when company is progressing so fast! Just 27.56% stake of promotors.

Disc: invested.


([email protected]) #28

Same here 5% every year can be purchased.

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(yudiagg) #29

Be careful. The key to their genuine financials is NOT profit and loss statement- but balance sheet. The receivables are so high that it appears that they got hardly any cash back for the goods sold!


(yudiagg) #30

I had ordered their goods on line to test. The products supplied did not appear to be organic - but the price was very high. Would never waste my money again.


(Satya Prakash) #31

How to know if product is produced organically! This risk is always there. We cannot lab test.

Disc: invested


(yudiagg) #32

1 They do not specifically mention on the label that the food is organic.
Just because the name of the company is Organic does not mean that the food
item they are selling is also organic.
2 For organic certification, land has to grow without chemical fertilisers
for minimum three years. Then the produce is certified by the accredited
agencies,
3 They sell practically every food item at their website - but certainly do
not grow all at their farms.
4 Pl check their website from the perspective of a buyer and also read
their earlier concalls.
5 Pl order some food items from their website for a better experience.

Disc ; Initially I had built a large position, but later sold all as I am
neither sure of the management nor their products not their receivables…


(Satya Prakash) #33

When I visited their website recently then most of the products were Sold Out. That has created doubt of it’s business style.
I am not much concerned by receivable as new business and small biz can have variation. Also, it has opened retail stores in Gujarat and Mumbai. That may cause higher inventory for stocking. It acquired new business too. That company’s old receivable will affect it.

My only concern is any scam. Like selling normal items as Organic is also a scam. Any day, the company can fall in that trap. But I don’t know, how things going. This can be checked by visiting sites only. But it is possible. If company sells only their own produced products then checking by visiting is easy.

Disc: invested and added today. Now, approx 6% of my portfolio.


(Satya Prakash) #34

White Organic agro name was White Diamond earlier. Then it has few fines to its name. SEBI has slapped fines for non disclosure of shareholding pattern etc in past.

Today, I wanted to visit its website but it is not loading. I noticed it slow earlier too. Today, it is completely useless. Hope the link I have shared is correct. I cannot see the content inside because it is not loading for me.

Disc: Invested


(josephseby) #35

it is becoz of the site is displayed in some special font . you have to update the browser


(Ramesh kumar) #36
  1. Receivables would only be available in the next quarter along with annual figures. However, in the Q2 concall, management mentioned that receivables of 40Cr on a revenue of 51-52 Cr was normal and the figure would remain constant hereafter. Noone questioned any change in receivables/payables figure in Q3 concall. So this remains unanswered as on date.
  2. In the Q3 concall management stated that creeping acquisitions @5% every year might be made by promoters
  3. Dubai subsidiary has started contributing with around 12Cr revenue and 6-7% bottomline.
  4. Management exploring possibility of establishing distribution linkage in Europe(Germany) for high margin revenues. Further sales would be easy when organic certification IC-3 is in place by Nov 2018 for major chunk of present land bank.
  5. Management also looking at acquiring 1000 acres more land in Holi/Diwali of 2018.
  6. Two follow-up orders from Patanjali was received. Since the order has become routine, it was not notified through exchange.
  7. No immediate plans to raise any funds. Notification to exchange was only for provisioning purpose. Preliminary discussions underway.

Source: Q3 concall
Disc: invested


(Satya Prakash) #37

Trading will shift to X group of BSE from currently XT group from Feb 21st, 2018. Listing fee has been paid. It is only BSE listed stock.

Disc: Invested.