Wim plast


(Vivek Mashrani, CFA) #122

No separate info. But it looks like 10% increase of PAT might be due to air coolers business if we assume normal run-rate of profit growth ex-coolers on historical basis as 25%-30%.


(Vivek Mashrani, CFA) #123

Wim plast latest annual report has now been released. Will post AR notes soon.

http://www.cellowimplast.com/images/wim%20plast%20ltd.%20-%20ar%202015-16.pdf


(Growth_without Debt) #124

No much details about aircooler business in AR. Why management is not open to share sales data and market performance of air cooler?


(Sarvesh Gupta) #125

Did anybody attend the AGM today? Would be great if you can share the details?


(Vivek Mashrani, CFA) #126

Any specific finance angle to below inter promoter transfer that they did?

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/67D839B0_7AFD_4335_9BAE_50D3A25587AF_105542.pdf


(StockDoc) #127

10% block deal this morning. Thoughts?
http://www.moneycontrol.com/stocks/marketstats/blockdeals/view_deals.php?sc_did=WP

Disclosure: Invested. ~6% of my portfolio.


(Vivek Mashrani, CFA) #128

It is the same inter promoter transfer which was proposed (mentioned on the post above). Same number of shares as mentioned in the circular. Thanks.


(Sarvesh Gupta) #129

Wimplast did ~30 cr of air coolers sales (confirmed with many analysts who track this stock) in FY17. This is a significant positive as many analysts were expecting less than 10 cr sales in the first year. This means that there is good traction for Cello aircoolers given the brand name and existing distribution network.

Given that TTM sales for Wimplast is just 367 cr, I feel Wimplast can easily grow at 20%+ for some years even if the core business grows at just 10-12%. This is because in my personal opinion it can add 30 cr+ of air cooler sales every year (so 60 cr of sales in FY18 and ~100 cr in FY19) which will provide the company around 10% of overall sales growth just from air-coolers. However I also feel that GST can be significant positive in FY18 and FY19 for air-coolers business as unorganized penetration is almost 80% in air-coolers business where organized players can benefit by gaining market share (apart from the fact that consumer durables business in India is generally doing very well as per various economic indicators and growing in double digits overall).

If one looks at Symphony TTM EBITDA margins (38%), coolers seems to be a much higher margin product (pls correct me if I am wrong here) than Wimplast core business (TTM EBITDA margin of 23%). So increasing cooler sales should also lead to expansion in margins for Wimplast.

A combination of margin increase and sales growth can lead to 20-25% types cagr in earnings for many years from here given the small size.

My only worry is that in the short term, oil prices can create some volatility in earnings for sure. But I think the management has the capability to pass it on and protect margins in the long term.

So overall while a large part of the positives is already captured in the stock price, I think this can still create a great return if someone is willing to hold for 5+ years from now.

Disclosure: Holding since 150 rs. levels.

PS - this is not a recommendation, I am not an advisor pls do your own research since these views are personal only.


(sivaprakasamp) #130

Wimplast posted a decent set of numbers not adversely affected by demonetisation:

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/39F17F8F_BE70_440B_AAB9_A1C86065789D_195723.pdf

Income down -12% yoy but sequentially up
PAT down by the same percentage yoy

9M PAT up 11% yoy


(Growth_without Debt) #131

Where did you find revenues and profit generated by Wim Plast from its air cooler business?


(Sarvesh Gupta) #132

If you read my post carefully, you will find answer to your question. As I have mentioned in my post, revenues from cooler business is as confirmed by analysts tracking the stocks. Margins for the cooler business is a possibility based on what Symphony earns.


(Growth_without Debt) #133

@8sarveshg, @vivek_mashrani, @sivaprakasamp While going through online store of cello and Amazon, I found that cello has tableware /crockery and thermocookware products. All these products marketed under cello brand. Are all these products under wim plast Ltd or it is totally different company of cello group? Please share your thoughts.
https://www.celloworld.com


(Aman Vij) #134

Apart from plastics and now coolers everything else comes under their private company. Although they use Cello brand name for selling the products under Wimplast as well.


(learner619) #135

Good question. Can anyone share some light on whether WIMPLAST holds any interest in these companies


(chets) #136

During the Q3 conf call of borosil, the MD mentioned that Cello Wimplast is a competitor in the opalware business, however he has only heard of their entry into this segment and not seen their products in the market yet. Has anyone heard about wimplast entering opalware business?
If Wimplast enters the opalware business, it may require substantial capital infusion in short term, however if all goes well won’t it lead to a good topline and bottom line increase?

Views invited!


(sivaprakasamp) #137

Wim Plast reported an average set of numbers.

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/e4c56a7d-1222-40e6-a0b7-22671dbd64a6.pdf

First impressions:

Q4 sales and PAT were flat YoY. But sequentially grew vs. Q3’17, indicating that sales has picked up post demonitisation.

FY17 sales was flat YoY but PAT was up 7% yoy driven by advantageous raw material prices.

Overall an average set of numbers IMO.


(Growth_without Debt) #138

Why there is no visibility of air cooler bussiness profit/ revenues?


(Sarvesh Gupta) #139

I think Wimplast has delivered a great set of results overall in FY17.

While demonetization has obviously affected the sales badly in Q3FY17 and somewhat in Q4FY17, the achievement and growth of the company excluding the demonetization quarter is nothing short of great.

If one compares Q1FY17+Q2FY17+Q4FY17 with Q1FY16+Q2FY16+Q4FY16, following are the growth numbers

Sales up 4% (however this is an irrelevant number as price of crude fall resulting in fall in prices of plastics). In the absence of volume numbers, a more appropriate indicator is Gross profit.

Gross Profit up 25% (this is a much better indicator which means volumes are likely up closer to 25% than to 4% depending on how much RM price was passed to the customer). Mind you this still also accounts for Q4FY17 which is the largest quarter and definitely had the partial impact of demonetization.

Opex up 12% (controlled opex well)

EBITDA up 42% (this is great rise)
EBIT and PBT up 48% (again great numbers)

Overall RoCE for full year including demonetization -> 30% once again a great number

FA has increased by 30% which has lowered the fixed asset turnover which means management has expanded the capacity by almost 30% -> indicates that management is still confident of growth.

Plastics are at 18% GST in my opinion and this sector will have a large unorganized market -> so good growth opportunity for Wimplast.

Good cooler sales in Q1FY18 can likely add to further growth.

Even if one just considers Q4FY17, Wimplast has grown PBT by 11% while companies like Nilkamal and Symphony have shown 0 yoy growth in Q4FY17.


(Sujay Ghosh) #140

Hi,
I saw in the first post "Wim Plast ltd, a part of Cello group, is into making plastic moulded furniture and bubbleguard sheets."
Does the revenues of Wim Plast ltd include sells from storage (food/drinks), Serveware, Tableware, Glassware, Pens, Home-Kitchen Appliances too?


(Sarvesh Gupta) #141

no it inlcudes air coolers, furniture plastic and moulded packaging stuff