Very low OPM and ROCE . There is no pricing power… is there any moat around the business … can anyone tell us
After holding for 3 years , exited at loss Very disappointing set up
Kingfa AGM FY 22 Notes
- Volume growth is very bright. Foray into new Auto OEMs, new age industries (both EV 4 &2 wheelers), consumer durables, a dedicated team in place for the same. - Plans to foray into Mining industry as well. - Exports to improve to South East Asia, Gulf and Africa. - PPE contribution currently less than 10%, but will become significant in overall revenues. - Raw material increase price passing on: Quarterly, half yearly price passing on has already been in place. - On quarterly concalls: currently quarterly powerpoints are being shared. Mgmt doesn't seem to have intentions for quarterly concalls. - Cost of raw material is ~90% of sales, majority of this is coming from the parent company in China. Mgmt guided that this situation is not going to change, which will keep resulting in foreign exchange outgo. FE outgo could be balanced by FE inflow due to exports.
- Focus for the last two years was on localization of production--> now almost all parts can be produced in-house. - Strategy is to make India is global hub for exports. - More focus will be on PPE and consumer durables.
bhai did u ask about why there is no hedging policy for kingfa? why there were forex losses and still no hedging policy