Promoters are taking 113 crores Gross Renumeration from company.
Don’t you think that is a bit too much considering this is a microcap company?
Disc- Invested, Re-evaluating my decision.
Looks like company did a mistake here as this is absolute figures and not Rs. in thousands.
Kindly recheck it. How can a 71 cr sales company give remuneration to CFO and CS this much amount which is not even related to promoters?
Source: Annual Report FY 23
Disc: Not invested.
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The company doesn’t even have that much of turnover. How is it possible that they are withdrawing that much remuneration. There is some mistake.
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Article about promoters’ background…
(source: Redirecting...)
Disc - no holdings in CFF Fluid Control
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Buying good companies at a premium valuation makes it a bad investment. CFF feels like one of those.
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I think the valuations is only slightly stretched now. I strongly believe that as Investors we should focus on future earnings of the company.
And CFF should do well in the long run in terms of the growth.
Disc: Invested and might be biased
Decent order received today by CFF.
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Discl: Invested at lower levels.
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Exact order size is not known, but based on discussion with some defence experts, it appears that order size will be around INR 800 Crores. It is almost 8 times the topline of the company. This order can take the company to a higher level. But, we should wait for company announcement in this regard.
Disclosure: Invested and biased.
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I was looking to add a defense stock to my portfolio and CFF looks interesting from a Market Cap and high Roe/Roce perspective. However the recent run up hints at a near time correction to me.
Any advice on how to proceed?
If you can buy multiple lots than can take entry in 1 and rest on dips
If only 1 lot than exact timing can be difficult
But can wait for retest ( if it happens ) as it is large base breakout
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As a value investor, it is difficult to buy defence stocks at present level. However, as the sector is leading, one wishes to be invested here. I therefore applied in recently Motilal Oswal Defence Index Fund… May be just a way to invest without looking at valuations.
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CFF is getting good orders on P75 submarine project. The project is likely to complete by 2030.
Tender for more ambitious P75(I) has been floated, let us see how it goes.
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Could you please share the source of new tender being floated ?
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They are working on it for long. Recently I read somewhere that even trials has started.
This news item is helpful too-
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About CFF Fluid Control Limited
Incorporated in 2012, CFF Fluid Control Limited is primarily engaged in the business of manufacturing and servicing of shipboard machinery. They manufacture critical component systems and test facilities for submarines and surface ships for The Indian Navy.
The entity also designs, manufacture, and service Mechanical equipment and systems for industries like Nuclear and Clean Energy.
The Company’s promoters and group companies have been in the defense manufacturing space for more than 20 years.
CFF Fluid Control was incorporated with the purpose of having a dedicated new entity focused on meeting the growing requirements of the Indian Navy, Mazagaon Dockyard, and Shipbuilders Limited (MDL). This was to undertake the manufacturing and supplying of mechanical equipment for the “Scorpene” Submarine Program of India.
The company’s facilities are situated at Khopoli. The facility is spread over 6,000 sq. mtrs. and has all the relevant state-of-the-art machinery and testing facilities. At the facility, the company design, manufacture, and service.
Servicing includes fluid control systems, distributor and air panels Weapons and Control Systems, Steering gear, Propulsion Systems, High-Pressure Air Systems, Hydraulics Systems, Breathing and Diving Air Systems, and Integrated Platform Management Systems for submarines and surface ships for the Indian Navy and its OEMs.
The facility is Indian Navy, MDL & Naval Group (France) approved and has ISO 9001:2015 certification for quality management systems.