30 lakhs but balance 23lakh around is with the promoters
I think you should see this as a whole business, not as 1 share. The market cap of this company is 114cr. now, and 46 cr. of cash. This company is on my watch list. They generate good cash flows every year but these promotors don’t know what to do with it and most of the cash is in the mutual fund.
1 Like
What i mean to say is if just by the amount of cash per shares value comes out to be 598 then at current prices it is undervalued.
My question is am i right in the calculation or not.
Hopefully someone following the stock can point out
30 lakh shares are outstanding and on a cash and investments of 46 crore, cash per share is about 150.
5 Likes
MD, Mr Asheesh Dabriwal has got his salary increased… by 2024 (9L/pm) would be double of what he was drawing till now… is it inline with the limits on CEO salaries? In current times when sales have not grown, to me it appears excessive…
1 Like
It is under 10% of net profits.
Does DHP manufactures valves for Oxygen Cylinders used in Hospitals ? Recently there is very high demand for Oxygen Cylinders, If valves used in those cylinders are manufactured by DHP…?
3 Likes
Majority of their revenue is towards lpg regulators & accessories thereof. Apart from this, they sell scrap in domestic.
1 Like
Anyone attended AGM…how is Q4 and year end results ?
I believe Q4 results were released just today.
Very good results going by Revenues, Profits and Return Ratios. But the Cashflows leave a lot to be desired.
2 Likes
This indeed is a bumper result considering the head winds in the last quarter. Top line growth is commendable with equally healthy operating margins.
Cash locked up in Mutual funds is a big concern and will influence the price more significantly that by its core business.
Hope the management begins to do something serious soon with its 76cr free cash.
2 Likes
Isn’t it better to have it in mutual funds when they can’t reinvest in business?
Well that also points out that it is not capital intensive. Trying to understand what is the real harm to shareholders by having that cash parked in mutual funds?
The management can do Buybacks or pay Dividends.
Paying Dividends is the more widely prevalent alternative - since it allows the Shareholders to decide what they want to do with the money (Either invest in other Financial Assets themselves, buy more of the stock or spend it).
2 Likes
I would prefer dividends over buyback as it has multiple negatives. Since management owns 75%, they might have a feel to have the funds directly invested via company. This has been the negative since last couple of years now. The same is being reflected in price.
However, it all boils down to one’s own decision in the judgement of management. If it is not a clear yes, then it is a clear no.
I believe, from compliance perspective, dividend payout is much easier than share buyback. But now dividend is taxable in the hands of receiver, at normal rates so why would promoter want to get dividend and pay more tax?
Talking about mutual funds, if they can switch from regular to direct scheme, they can save around Rs 47 lacs per annum. I don’t know how to communicate this to the management and the board.
2 Likes
Hopefully this AGM would be online and investors can raise this concern.
1 Like
Sir, inventory increased may be intentional due to recent supply chain disruption. I noticed some important things in other expenses all type of expenses controlled very well. And advance rx from customer is 1 cr normally it remains 8 to 10 lacs may be high order in place for which customer paida high advance to DHP or any new customer from which they took reasonable amount in advance before supplying. Trade Rx increase I am not able to think what may be the reason but even at suppressed cfo of FY 21 accounting PAT is converted in cash profit over last 10 yrs so this gives some comfort. I think we have to check it after 1H FY22 results.
1 Like
Increase in inventory is mostly imported raw material so this is intentional as per my view.
5 years down the line, It’s so refreshing and educative to see and reflect upon a microcap stock with mcap of 40 cr. and a strong balance sheet to get the traction and turn into a 200 cr mcap and still going strong.
1 Like