Any inputs why this stock may have missed the midcap rally of last 3-4 months? Does market know anything not known in public domain?
what to do with wimplastttt suggestions r welcomw rom all the boarders
Please let me know, is the stock still a good buy ?
I’m viewing possible medium term entry opportunities in this scrip and Astral with Astral being the better buy.
Good performing company in a nice sector but the numbers in Astral look better at the moment.
Please ignore the above comment. I did not factor the difference between price and intrinsic value of Astral when I was comparing Astral with Wim Plast.
Anyone closely tracking wimplast ? Am confused after this runup … Bought at 145 … Now at 1600 odd … Can wimplast scale up from these levels ? o r does it make sense to book out …
Hey buddy,
Wim Plast is soon going to enter a period of explosive growth. Their Q4 was fantastic where EPS grew 47% YoY.
I again spoke with IR team and they said a lot of positive things. The company will never dilute to fund growth. All capex is being done from internal accruals. They are hoping for a good year in the Air Cooler business while the normal business should grow at the same pace as last year.
Lastly, I believe this company is in a very boring space with low margins which makes it unattractive for competition to enter their domain. I love such companies which operate in unattractive sectors. It will take ages for anyone to replicate their 10,000+ strong dealer network.
Hence, the company is going to post good earnings for the foreseeable future. Definitely hold.
Disclosure- Bought at 800/share. Still holding.
Warm regards
Neil
Neil, I feel we should be careful on relying distribution as a moat for any company. With modern trade and e-commerce growing fast, distribution is going to get much easier over the next 10 years. Here is where brand equity really matters. I think however in this case, Cello has a strong connect of quality in the minds of its consumers which will make it difficult for new competition to take away share from them even at lower prices.
Hey buddy,
Yes, you are correct in a way. But Wim Plast has a lot more going than its impressive network. Its a very low cost player and thats again very difficult to replicate. Rather the business of plastic furniture is so boring, that I am sure no one wants to get in here.
Another thing is GST. Should level the playing field and give further impetus to all round stats of the company.
Air coolers is another good tactic. Who knows how much can this aid Revenues, margins & PAT in the years to come.
All said, Wim plast is a low cost operator in a boring sector and is the market leader. The runway looks huge. Debt free. Investor friendly management doesnt hurt (never diluted).
I think this company will just keep rising as there will be great demand for its plastic products in rural india and also in urban india.
But yes, you are also correct…cannot take anything for granted. As all good investors, we will be on the lookout for technological disruptors and other factors!
Cheers
Neil
Wimpy AR notes!
Wimplast AR is very clear. They will grow.
*Company has entered the Air Coolers market this year. Also set up new unit of injection die and moulds. Company has also launched a wide range of Furniture products.
*Continuous efforts are being taken to expand capacity and upgrading technology to augment increasing demand.
*Company invested 30cr in 2014-15 for growth capex (mentioned above).
*Promoter holding stands at maximum permissible limit at 75%. But interestingly, Institutional holding has increased last year and retail shareholding has decreased by 2.32%. (This could be a good thing).
*Dolly Khanna is top ‘non-promoter’ shareholder with 61,802 shares. DSP, Valuequest and HDFC bought big chunks last year and are now in top 10 shareholders. (Doesnt really matter to us, but just for knowledge).
*With variety of products and superior distribution network, company expects good growth in future.
*Company has witnessed competition from small players and even though they supply non-standard products (low grade material), they look identical to companys standard products. This could be a threat.
*14cr cash on books. I am happy the company isnt maintaining a huge cash balance. They are rightly investing.
*Net cash from operating activities more than doubled from 18cr to 43cr in 2014-15. (Great sign!). (Out of 43cr, they invested 30cr in capex).
Conclusion - Such a classy and prudent company. I think this one can grow a lot more. This Air Cooler segment can be a huge hit if it picks up. Very promising company. Lets hold tight!
Disclosure - Holding. Vested interest.
1 Like
Thanks guys … i almost sold off at 1600 !
When are we expecting the Q1 results ?
The business really looks promising … No much moat , but the low margins will ensure no one new come into the business …
But, there is strong competion from NILKAMAL and supreme [ both together dominate around 45 - 50 % of the plastic furniture industry] .
I think , conservatively we can do 100 cr. bottomline by FY2020.
At a fwd. earnings of 22 - 24 times, wimplast would be at 2400 M . Cap which looks reasonably possible .
1 Like
Gujarat HC barred cello to inaugurate air coolers as the models look like Symphony air coolers.it happened in Mar 2015.but there is no news after that.
Does anyone have idea?
Wim Plast reported pretty decent numbers. Volumes were up slightly. Revenues were down because of steep fall in input prices.
Ebitda margins were up 400bps YoY.
Healthy set of numbers. Stable.
Disc- Holding.
Cheers everyone.
Neil
Wim plast has launched aircoolers.
http://www.newkerala.com/news/2016/fullnews-45004.html
I did not come across any developments about the court case b/w Symphony and Wim Plast. Is the verdict out in favor of Wim Plast?
Cello is restrained by the Court from launching, Symphony look-alike Air Coolers in the Market
http://www.equitybulls.com/admin/news2006/news_det.asp?id=182968
2 Likes
I think this happened last year when court had stay order to manufacture the same design. But I think they have managed to make new designs without copyright conflict this year and the coolers are already selling in the market.
Its also being sold online. Please see below:
https://paytm.com/shop/search/?category=29161&q=Cello%20Air%20Cooler&from=autosuggest
The stay order is dated 12-4-16.
I am not sure how far its enforced.
Please see below stay verdict of last year. I think until final decision they will stay sale of coolers which are similar to Symphony.
https://indiankanoon.org/doc/28237134/
But since Cello has successfully launched the coolers, its not about enforcement, it means these models are not in purview of the case. Company like Cello will never take risk of launching products which are stayed by court.
E06E50DC_1955_4646_9AA1_D625822451E9_141359.pdf (344.4 KB)
This corporate announcement was from symphony on 12/4/16. Its only for three models which are look alikes.
1 Like