Good read !
Company and Promoter background
How being sensitive and caring for people who work for you result in productivity and efficiency gains
Having world class infrastructure and facilities
Build customer trust and loyalty
http://www.forbes.com/sites/naazneenkarmali/2015/12/02/childs-play/
"In another and less fathomable leap, it is aiming to make disposable diapers in the U.S., taking on the likes of Procter & Gamble in its home market. Jacob argues, after market study, that he can realize a 10% to 15% cost advantage. His brave mantra: āMy father made me strong enough to survive.ā
This is news to me. Is he planning to make diapers via KGL or via new company?. Anyone has any insights on this?
I also jumped up from my seat when read thisā¦but I guess they are already into this business under kitex limitedā¦where they manufacture lungis,undergarmentsā¦ Etcā¦i even did googleā¦if I can find out some news over itā¦i typed kitex + diapersā¦they are already selling online on kitex limited siteā¦one one side Forbes latest article claims to be a new businessā¦and the company claims to be already in this business through kitex limitedā¦(not kitex garments limited).
Kitex Garments Ltd has informed BSE that Mr. Boby Michael, General Manager (Finance) and Chief Financial Officer has resigned from the services of the Company from the closing hours on January 07, 2016.
The Company has relieved him from all his responsibilities effective that date, subject to the necessary consent of the Board of Directors at their ensuing Board Meeting.
any idea whats happening?
CFO resignation effective immediately doesnāt seem right. Could this be more of a non-performance or personality clash or some financial mess up esp. related to 200 crores cash?
Your thoughts?
Disc: Invested recently during correction.
The top finance guy moving out in a knee jerk reaction will certainly have some major financial issue, which was not handled by CFO as per management wishes. We need to wait for any clarification/ interview from company or CFO till Q3 results, which will certainly clear the dust. Need to watch closely for few weeksā¦
Kitex Q3 results to be announced today. when is the conference call and does anybody have numbers?
Horror of a resultā¦600 crore guidance is not even looking like a 2020 dream
PS - invested and fearful///late evening updateā¦sold 3/4 th of the quantity and booked a huge loss. All I can say is that from here, I will never take any concall update or guidance in face value. In India, anything goes and people can talk anything, pull wool over oneās eyes, wash their mouth and move onā¦
it was given just 5 months agoā¦
i felt something terrible was always comingā¦friends what next now? for ppl who are trapped at 600/700. pls advise.
Why does 3Q results release not have any information on the pledged shares data? Isnāt that mandatory?
BTW if someone has the conference call dial in, please share.
Growth aside the key is to find out the following
---- What happened to the cash? Has it been converted to rupees and has debt been paid off as promised by management in the previous call? (If this has not been done yet, wellā¦)
-----Why did the CFO resign?
Thankfully sold everything after 2Q!
Margins are intact - both NM and EBITDA Margin. We cannot expect sales growth to happen every quarter. Long term fundamentals are not changed.
Discl: Added more in todayās fall.
Think this act of Mgmt to concentrate on running villages is proving costly for Kitex. I always believed SJacobās words come with a discount but never thought it would go to the extent of 50%. Achieving 600Cr turnover for FY16 means Q4 sales of 273Cr. which is definitely not going to happen. Also Sabu Jacob in that interview boasted that they are fully booked for FY16. Donāt know what to expect from this guy.
Discl: Invested and now very disappointed
Hi @sethufan. Kitex gets a growth premium and multiple. For that reason it is imperative that it grows almost every quarter, especially Q3 & Q4 (as you know the co is 2H heavy). Last 2 quarterly performance has resulted in a de-rating due to lack of growth.
Disc: Early investor. Still holding. Concerned.
Hi @sethufan,
A company is an Average or Good or Great company based on the following
Great Company - Excellent Management + Excellent Runway + Excellent #s(Margin Profile, Return ratios,etc) + Growth -> Example - Ajanta, Eicher, Page,etc Mr Market gives higher valuation multiples
Good Company - Excellent Management + Excellent #s(Margin Profile, Return ratios,etc) -> Example - MPS Mr Market gives decent valuation multiples, It is possible that the stocks here may get re-rated upwards if they are able to show growth (or) if return ratios deteriorate they may get derated downwards
Average Company -> There are a lot of examples
Now a few months back Kitex was earlier getting valuation multiples of a Great company and with every passing quarter, when growth was absent & when cash on books became questionable, they got de-rated one-notch lower as just a good company and subsequently when they werenāt able to stand by their own guidance they got de-rated a bit more.
I am not sure if this de-rating process is complete as it has just started and it might settle down in a new trading range. So assigning the same valuation multiple that it got a few months back may not be the best idea given what has transpired over the last few months.
Thanks,
Ravi S
Disc - No positions here.
I remember this old saying, from my young days - 'Trust is like an eraser. It gets smaller, with each mistake". I am peeved, frustrated and of course questioning my own logic of not exiting earlier, when the signs were so obvious. All I can say is that this may still play out but I can not be keep on depending on that probability alone; there has to be visible signs of consistency and the proof of pudding is only in the eating.
I am aware of many folks, who made huge chunks in Kitex and I am also one but for the fact is that it has a big negative sign before.
Good luck guys and that is the only thing you can hope for; to me, hope is never a strategy and when I just depended on hope, I invariably stumbled !!
I am sorry to hear that Kalyan. The key thing is to learn from the mistake and avoid it in the future.
This might sound like a I told you before kind of post. But if one listened to their last few con calls, it was a no brainer. For every question, the MD was very positive. He didnt see any threat at all. A few lines i remember. (in his own words), Technology improved efficiency. EBIDTA has gone up like anything. Thanks to your support our stock price has gone up like anything.
No offence meant. I thought it was always an avoid.
Any view on this announcement:"
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=ea31248b-026a-41f3-9f10-33bdf2dbd8bb
KITEX GARMENTS LTD. - 521248 - Outcome of Board Meeting (Appointment of Chief Financial Officer) Board Meeting 16:46
Kitex Garments Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 25, 2016,
have approved the delegation of additional responsibilities of Chief Financial Officer to Mr.Sabu M Jacob, Chairman & Managing Director with immediate effect until a new incumbent is appointed to that post.
Mr. Sabu becoming CFO in interim and not able to find any other professional even after almost 15 days is not a good sign in my opinion.
Discl: No holding in Kitex. No activity in Kitex.
Sir,
though i m new to the Forum and i fully respect senior peopleās view but would like to say that bad quarters happen with every company.Company is still in growth stage.Yes prima facie looks like some window dressing of the balance sheet but lets here out the conference calls and subsequent media interactions.I still think its a buying opportunity.Yes absolutely correct to say that PE ratio is definately going to contract some more.Lots of good things will be in store ( KGL & KCL merger + Their own brand Launch Little star)
Views of Senior VPās will surely be very helpful at this need of the hour.
Disc : Invested at higher levels and after con call may look to Average. For long term portfolio
Please share concall details if anyone is aware of the same. Thanks in advance.
