Focus Lighting & Fixtures Limited (SME)

It was discussed during concall. PFB snippet from transcript.

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Any thoughts on why stock is breaking down? Do you think it is just nervousness before results or any bad news that some market participants are aware of?

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Same concern. The volumes have never been higher so maybe there is some big seller? I hope it’s not the promoter!

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There are couple of large public shareholders who have been cutting their stake for last few quarters, I am guesssing they are exiting. Such volumes can come from only large holders.

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Yes , something going on !!!
FOCUS_25072024155708_OutcomeofInvestorsMeet25072024.pdf (186.8 KB)
OutcomeofBMwithresults_02082024174957.pdf (nseindia.com)
Q1 FY25: Revenue 55.35 Cr
EBITDA 12.05 Cr (21.77%)
PAT 9.09 Cr (16.43%)
EPS Rs 1.38
Current Market Cap ~ 800 Cr


They had not grown YOY but they come up with this weird ‘Consolidated’ vs ‘Standalone’ comparison to show that they have grown, this is inexplicable and why are they even doing these things!
The MD also mentions about the contract again about which he had already informed in the previous concall.
Disc: Invested and introspecting

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Amit Sheth is promising the moon while zero followup on execution from last many qtrs.

In each new concall he comes up with something novel to lure investors.

For instance, during q2 concall last year he talked about home lighting segment possibilities and about them doing some tieups with other home decor companies to come up with common retail showrooms. Zero followup and execution.

They have been talking about railways as a huge growth driver from past few years which is yet to be seen.

Now they came up with this ‘green’ lighting new tech during q4 concall…really?

Not very satisfying answers on any real questions on calls including on receivables etc.

Many VPers in the past have raised questions about their financial practices and real on ground presence several times on the thread.

So many other points i can mention on past promises undelivered…while they keep talking about new stuff in every other concall.

I don’t know if they are as shady as this all sounds, but this ain’t how a good mgmt really works.

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I do have the same thought. Also, the founder never provided any real strategy. He talks about how we have IP, IP, and IP. and never mentioned explicitly that the IP is with the developed and they are just the manufacturer and distributor of the product. He Talks like Vijay Shekhar Sharma. just ideas and ideas, every quarter he figures out a new multi-billion dollar industry, in which they are the only player.

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Microsoft Word - 3. Intimation of Investor Presentation for Q1FY25.pdf (122.2 KB)

In last 5 Quarter more or less same number they are reported

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huge selling by big public shareholders…like Rishi & Rajendra

Yes , something going on !!!

The Cons. vs Standalone could had been a typo and we can give them the benefit of doubt
However, Mr. Sheth has been making some really tall promises without any execution.

He keeps on saying ‘patented tech’, ‘will disrupt the market’, ‘Philips and Havells’, ‘we have something we will reveal later’, ‘We are shocked by the revenue size of retail, if we enter’ and so on…
Honestly, all this is now starting to feel a little shady. Even their last update on 23rd July was “launched innovative and unique kind of product”. Why do they have to use such vague statements without giving any clarity?.

With some biggies now selling, I am expecting their cover is probably getting blown off and this is also evident in their stock price. Hugely disappointed !!

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We all are attending concall on 14.08.2024 … to get better understand
FOCUS_09082024105105_1IntimationofEarningConferenceCallQ1FY25.pdf (766.5 KB)

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Focus Lighting

  1. Outdoor lighting is a key focus area and the company is closing working with the Adani group (Mumbai phase 1 is near to complete and a total of 4 phases + Guwahati is undergoing the project). Adani has 27 airports.
  2. Directly working with L & T and Surat Municipal Corporation for street light and other projects
  3. Home Segment: Right now, 35 Channel partners, and planning for 60 in the future.
  4. Experience Center: Right now, 3 and planning to open 3 more in this year in India and one at Dubai / Sudai
  5. Railway takes time
  6. Receivable days are increasing due to work orders but streamlined in future . Channel partners days right now 45 days
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Sharing my experience why I had exited this company. It could be just my way of observing things. I could be 100 % wrong also.

  • Hardly any presence of this company on any social network. We all know Today’s era of Digital marketing
  • Very cheap WordPress website, hardly works.

  • In last concall someone had asked, there is a business named focus lighting register in USA. Mr Sheth was completely unware of that company which seem to be very famous and competing in similar business with same name. Hows that possible?

  • Always talking like they have discovered something which will disturb the world but on the ground its not reflecting in the balancesheet.

  • I tried searching for Experience centers they always talk about but I never saw any real pictures. If anyone has seen or had chance to visit one of the center. please do share with everyone.

  • Big investors are existing and no of sharehoders has increased more than 4X just in a year ( FY23-FY24).

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There is some negative sentiment around the company and its management, particularly concerning their technological claims and receivable days. However, I find that the numbers align with management’s commentary. While there is definitely room for improvement—such as distinguishing inquiries from orders and addressing receivable days more effectively—the situation doesn’t appear alarming.

The company works with channel partners that drive sales, which naturally leads to some challenges in the working cycle. Their business tends to be lumpy, showing significant growth during periods of large orders as they primarily focus on substantial contracts. They seem to take a long-term view, planning from a 3-5-year time frame rather than focusing solely on quarterly performance.

For Q1 2025, we can expect marginal year-over-year growth. According to management, receivables should improve in September and October, but this will need to be monitored closely.

What I find interesting is that everything was fine until the start of July, with the 145-150 level providing good support. However, the company began trading below those levels, leading to larger selling pressure at the start of August, around the 120-125 mark. The selling then intensified, with even larger volumes in recent days.

I believe that every 30-40%+ correction has some underlying fundamental reasons, but in this case, I’ve revisited my initial thesis and looked for recent developments, yet I don’t see anything too alarming that would explain these price movements. I understand the sentiment is weak and there are questions about execution, but such drastic price changes are beyond my understanding.

The only thesis I can offer is that some people made too much, too quickly on this counter. The company was trading at around 4.50 INR in mid-2021, and by the start of this year, it had touched over 200—a whopping 50x return in three years. After consolidating at around 150, the price dropped again to 125. It seems someone decided to cash out and book profits, leading to panic selling among shareholders with similar holdings. Recent buyers, understandably, didn’t want to hold onto a falling stock, especially with the market in turmoil, and within days, the stock was completely decimated.

Disc: This is all just my opinion and limited understanding. It represents 0.6% of my allocation, so there’s minimal bias as well as research. I just wanted to share something odd that I observed during my bi-monthly portfolio review.

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A very well put together post, mate. The company has come on my radar recently due to its mouth watering valuations viz a viz its past growth rate.

I’m barely tracking the company but having heard the management on the Q1 con call, I couldn’t really understand what is so wrong with the company for such a sharp fall in the stock price. The management also clarified things about the receivable days and the fact they have visibility on growth for the next 2-3 years.

Will continue to monitor and learn more about the business. Just purely on valuations, the company is looking super interesting.

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I had seen their Mumbai experience centre - it was in Andheri East earlier. I think now shifted to Lower Parel.

Thanks for the information. If possible, Can you please share you experience after visit

A high growth company slowing down the growth hence the fall… this is what seems to me… another such example is Best Agro. Such a steep fall from 52week high. Any guidance on next year?