Bhandari Hosiery Exports Ltd

This is my first post where I am trying to open a treat for some new company. Still learning - Sr VP pls comments on this keeping that in mind

About Company :

Bhandari Hosiery Exports Ltd., Ludhiana based company incorporated in the year 1993, with a market
cap of Rs 80.59 Cr. Its engage knitted garments exports to EU and US based brands. Same business of Kitex garments.

Bhandari Hosiery Exports Ltd. key Products/Revenue Segments include Sale of Products which
contributed Rs 124.89 Cr to Sales Value (100.00% of Total Sales), for the year ending 31-Mar-2015.

For the quarter ended 30-Sep-2015, the company has reported a Standalone sales of Rs. 53.40
Cr., up 13.51% from last quarter Sales of Rs. 47.04 Cr. and up 116.31% from last year same quarter Sales of Rs. 24.68 Cr. Company has reported net profit after tax of Rs. 2.04 Cr. in latest quarter.

The company’s management includes Mr.Nitin Bhandari, Mr.Vikas Nayyar, Ms.Manmeet Sikka,
Mr.Ashish Thapar ( Disc: my former business associate but not in touc with him from many years), Mr.Gurinder Makkar, Mr.Gurinder Makkar, Mr.Manoj Kumar.

Management : Decent educated - Nitin Bhandari, MD holds MBA from London and have fair reputation in garments exports market for doing clean business. I am from same industry thus I know this :smile:

Pls refer this link for quick snapshot about company Bhandari Hosiery Exports - YouTube and Bhandari Hosiery Exports Ltd financial results and price chart - Screener

- Financials : Looks healthy. Good jump in net profits from -0.9 cr to 2.03 and 2.04 in last 2 quarters.

Concerns: Low promoters holdings thought its gone up in recent past

Opportunity :

Expansion : Manufacturing expansion is must to capture market share for top-line push. They are looking to add fabric manufacturing capacity by 2.5 times. Pls refer Nitin Bhandari interview with Anil Mascarenhas and Yash Ved of IIFL

Nitin Bhandari, Managing Director, Bhandari Hosiery Exports Ltd and

Need to find out the current status of expansion and by when it will be fully operational. Also am assuming Borrowings and Total Liabilities has gone up courtesy expansion plans - this also needs to cross check.

Stock Split : Company has announce on 15th Dec Sub-division of nominal value of equity shares of the Company from Rs. 10/- (Rupees Ten only) each to Rs. 1/- (Rupees One only) each subject to the approval of Members by Postal Ballot Process and subject to necessary compliance and obtaining of necessary approvals, consents etc.

Because of recent news, also its in radar or traders and volume has gone up, on 24th Dec it got jumped by almost 10%.Its currently on 1.57 of BV with 23.91 PE against industry PE of 33.78. Can we see another Kitex Garments in making in coming years?

Disc: Not invested, tracking from last 15 days

Why a co with share price of just 55 going for a split? I feel its prudent to avoid such stocks & its good to have low floating stocks & penny stock generally entices people to go for trading


look at the cash flows…i would be very skeptical about it …also this is in addition to the concern highlighted by calmabhi23.

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promoter holding is just 24 it a big concern.this appears to be a operating leverage player.

It is found from the Q2 results published that the promoters holdings has been increased to 75.81%!
(more than 75%as against SEBI rule) Is it correct? is 24 percent.any senior any opinion on this stock

I am also having doubt. But as per money control .com it is above 75%.

No 75% is with public see this from MC


As per Q2 Shareholding pattern published, the promoter’s total share is 24.19.

Please refer to the BSE announcement link:

pl. verify Q2 result.

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I have verified company website and the information is available as on 30/6/15.

I have checked halfyerly results in economic times website.It is confirmed that the promoters holdings
shown as 75.81%.Total confusion.Members may find out correct figure for 30/09/15.

lets not waste time on this.promoters holding is low 24 percent.but company doing well.any news on their expansion plans and quality of their products.anybody here from ludhiana.

Well products are goods no news about expansions

they plan to open their own stores.spoke to cs.can any body comment on their poor cash flows

good results still stock going down.any reasons other than general mkt condition

yes i am.only concern low promoter holding.spoke to cs they are opening their own stores.

going to list on NSE from 30 jan

Cash flow from Operations negative, so capital intensive. Interesting is it is earning from financial activities as CFO from finance is positive, can anybody share light on this