Its not about they electronic business,
its about their old subsidiary Bharat Energy ventures . As per my previous post, they have a receivable of about 115 cr from Electronic research as of Mar 15 AR,
My guess is they must have received part payment from Electronic research which is showing as other income. However, same may not be true. We need to see and compare the balance sheet of upcoming Sept qtr with Mar 16 qtr. If there is a comparable drop in receivables ( equal to other income more or less) .
Otherwise, the other income can come from sale of assets, land, that should lead to drop in fixed assets.
Ok. Thanks. I donāt expect them to release BS in quarterly results. They did not do it for the June quarter. Also they have asked for permission to prepare AR and conduct AGM by December 2016. So this data wonāt be available anytime soon.
BPL is up 20% today on the back of reports of itās entry into Kerala with Flipkart
Good days ahead!
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BPL Flikart story is really emergingā¦good feedback for online products in kerala it is not that much visible but online channel play is realy different and they using it very well invested in it around 30 and still believe in the best
This is my first post at valuepickr. Pardon me if I make a mistake in posting as per rules by letting me know and Iāll correct it for future.
- Sept 2016 BPL Results:
http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/F014D6F2_A485_453C_BA86_BF10C57A553D_193346.pdf
The results show a promising increase in sales to 37cr as compared to 16cr in June 2016 quarter. Operational profit of 1cr as against loss of 9 lakhs in June 2016. They had a target to reach 100cr sale mark by March 2017 and they have crossed 53cr half yearly. Assuming that Diwali will help them sustain the sales trend. They may well end up close to 100cr mark by Dec 2016.
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It is 3 selling TV products on flipkart 24", 32" and 40". I have noticed a significant increase in number of ratings from near around 3200 mid Oct-2016 to 4200+ today for its main selling 32" TV. Thatās a sharp increase %wise overall signifying good sales for the festive season. Many reviews suggest the day of delivery they get installation and demo all within 2 days of order suggesting a co-ordinated effort between BPL and flipkart. The negative reviews in the last month that I have seen only have given low ratings speaking about delay in flipkart service. Besides 1-2 product complain there arenāt any for Oct.
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Itās avg rating at flipkart which was 4.0-4.3 uptil few weeks / months back all show as 4.3 now. It shows product is recieving good response and higher ratings to increase its avg rating.
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As of today I see price increase in their products. For Diwali 32" was selling at 12,999/- now itās increased to 14,999/- which is 1,000/- above VU TV. Similarly itās increased price for 24" and is priced 1,000/- above VU TV. But itās 40" TV is priced at 25,999/- as compared to VUās 21,999/-. Thatās a difference of 4,000/- and it hasnāt seen any significant increase in ratings or reviews.
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In the reviews people have posted identifying the old brand from 90s, and noting that they are proud to buy an Indian brand instead of foreign. So it seems the whole going against buying Chinese items knowingly or unknowingly has benefitted due to mindset of some buyers.
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I came across an article which mentioned that Chinese brand LeEco had entered TV market for online sales of big screen TVs in August 2016. And itās prices are lower than others who sell 55" 65" TV. BPL does not. But the article also mentioned that cost TV production in China has gone up by 10%. This is something that would affect the margins for BPL.
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The stock has seen 2 upper circuits since last post here in Sept 2016 and 2 lower circuits (on back of low volumes) and is trading between 70-100 since.
If anybody has more inputs to share please do so we can keep a close track on BPLās prospects
Disclosure: Invested.
As far as I understand, BPL imports components from China and just assembles them in India. So, essentially, if you buy from BPL, you are still buying Chinese products. Correct me if I am wrong.
What worries me is that BPL does not have the luxury and resources to spend on R&D. Its strategy of importing & assembling mean that there will be wafer thin profits, no matter how high the revenue. Although the increase in sales has been quite encouraging, they were also helped by a small base effect. IMO the increase in sales going forward will not be as high.
Disclosure: Have exited my position at around Rs 50. Will enter again if BPLās operating performance improves.
Good article in Business Today on turnaround efforts in BPL.
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I think porinju has also invesmt in bplā¦any idea abt his holdings?pls share ur knowledgeā¦
I have no idea if Porinju has invested or not neither am I particularly interested to know. Whether someone else has invested does not make an investment case for me.
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When I read annual reports of BPL, I got confused. The banks have forced recompense clause on the company. So, when the company starts making money, the banks need to be compensated for the hir-cut that they took during restructuring. The har-cut for banks was big, so the future compensation to banks would be a large amount. It appeared to me that BPL licensed the brand to a promoter entity to carry out the consumer appliance business, which includes the sale of home appliances through flipkart. The amount of license fees received by BPL is not mentioned, but looking at financials it did not appear to be substantial.
In brief, I got an impression that BPL is booking profits in a promoter entity to avoid paying the recompense to banks. If true, then BPL may not book large profits in the company anytime soon.
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Sir,
They have been in the past accused of Stock Manipulation (mentioned in the book The Scam - ketan parekh, and Harshad mehta both)
http://www.thehindubusinessline.com/2001/05/15/stories/021562sa.htm
http://indiatoday.intoday.in/story/ketan-parekh-stock-market-share-prices-sebi-k-10-stocks/1/208342.html Promoters of BPL were also found
http://www.rediff.com/money/2001/apr/19sebi1.htm
https://www.google.co.in/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=bpl%2BSebi
Currently also their debtors position is precarious (115 crore oustanding - almost equal to the cumulative sales of past 10 quarters)
Even this Flipkart thing is being touted since a long time (since 2014 if im not wrong)
I had come across this piece.
When I looked up online, could find no footprint of this Communication Advisor
@ashwinidamani I am not invested, neither do I intend to. I posted the link to the article in BT as I liked the story and for those who follow the stock.
What we have to try to understand is that have they been able to get out of their murky past (which is known and therefore presumably already in the price).
The reason why I am personally not interested in the stock is I think the industry is a very competitive one. It presents a difficult scenario for sustainable margins or earnings.
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The BT article is nothing new and one of several PR blitzes of the company in the last 2 years. Every article seems to talking about the same things:
- BPL still commands a strong brand recall
- Online partnership with Flipkart saves them a ton on distribution, marketing and servicing costs.
- They want to increase their revenue to Rs 600 crores in the next 2-3 years.
It is the same story being re-cycled and published in a new magazine/paper. Here are a few other articles:
What no article states is that, the company imports parts from China and simply assembles stuff in India. They want to start manufacturing again and are looking for investments. Even if they start manufacturing, their ability to develop cutting edge products and compete with the likes of Sony, Samsung etc is questionable. Playing the volume game by being in the lower end of the market will have short lived benefits.
I went through their annual reports and the relation between all their businesses (medical equipments, energy, consumer appliances, home automation solutions etc) is not very clear. Every now and then BPL reports a huge āother incomeā, but that has never been explained. I had posted on this while initiating the thread as well. My emails to the investor relations team have been unanswered. After my 3rd attempt I stopped trying. I donāt understand how these guys will manage to get investments without sufficient public disclosure.
They are yet to conduct an AGM for FY16. Its going to be held on 22nd December. They havenāt released the annual report for FY 16 yet. Things will become clearer after that.
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That was my first reaction as well. Lets wait for the AR and AGM to be held on 22nd December.
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Great to see that you have similar thoughts. This is a very big red flag for me. Lenders have stronger rights than minority shareholders. I donāt expect that a company that shortchanges its lenders would be fair to its minority shareholders. This company is out of my consideration set of investible companies on the basis of what it has mentioned in its annual reports.
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@pranav_pratap
Had come across a blog post by Neeraj Marathe, a respected value investor, on Sharp India. He pointed out that for Sharp products the entity which manufactures products and the entity which sells products to end consumers (distribution company) are 2 different entities. The manufacturing entity is a public (listed) entity while the other is a private company. Majority of the profits are taken by the distribution company, leaving barely anything for the manufacturing company. Since both the companies are controlled by the promoters, this ends up being unfair to the minority shareholders of the manufacturing company.
Could something similar be happening in BPL?
Read the blogpost here.
Flipkart launches its own private label. Flipkart Smart Buy will span 25-30 categories in electronics, electronic accessories and home plastics. They will launch a second private label next year covering more categories.
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Bpl just isnt a ply on tv and washing machine. They are also making a headway in medical equipments as well. But i dont know whether they hold it through bpl or its in their individual names. Also a major chunk in bpl medical is held by Golman sachs.
Disclosure : invested