In don’t understand the amount of interest in this stock, even after governance issues have cropped up. In 2018, I was tracking this stock. No matter how much I tried to convince myself at that time, I couldn’t see this as an FMCG play, it is a commodity. I mention this because lot of investors seem to be having a lot of faith in the company’s “brands”. Even without the governance issue, investors have lost money on all rice stocks in the midst of a raging bull market.
Investors better spend time analysing Balance Sheets rather than chargesheets. There is no dearth of good businesses to invest.
@Chandragupta
I do agree with you on the below below points,
Its not a FMCG player like HUL or Britannia
Investors have to be cautious or stay away if there is any Governance issue
Investors lost money if they invested in the peak of 2018
However,
It cannot be compared with FMCG players and wont get FMCG valuation even though its tagged as FMCG. Nothing wrong in investing in a business which is selling commodity as a brand. ITC’s one of the big brand is Ashirwad which is similar in nature.
It depends on the governance issue. Current issue doesn’t looks like would impact the performance of the company or damage the balance sheet in medium or long term (my view and it may vary person to person)
Why do we need to just compare from 2018 market price? Still with CMP, It grown more than 6 times in last ten years. Even from 2018 to now, EPS has gown 12% every year. Investors have to enter at the right time at least around or below median PE in this kind of business.
Lets forget about company(lt foods) and industry and lets focus on numbers . How commodity company can have good consistent profit and sales growth since last 10 yrs with stable margins?
Even basmati is commodity,
1…L t foods has stable margin due to increasing branded buisness
2…Pat is consistently growing since 2008
3…I t food is not behaving like cyclical stock
4…basmati industry has definate entry barrier .
So i think,even though basmati is commodity,good companies in basmati rice industries can achieve
higher PE by increasing their branded business
I am trying to find proceeding happen today for the on-going case but I think most probably it has been postponed as per below table though I am not sure. Need to check with Cs of the company.
Any pointers or additional information is appreciated!
S. No. Column A
(Matters listed on)
Column B
(Next date of hearing fixed as)
26.04.2021 25.05.2021
27.04.2021 27.05.2021
28.04.2021 28.05.2021
29.04.2021 29.05.2021
30.04.2021 31.05.2021
01.05.2021 01.06.2021
03.05.2021 02.06.2021
04.05.2021 03.06.2021
05.05.2021 04.06.2021
06.05.2021 05.06.2021
Reason:
Pursuant to the office circular no. Power Gaz/
RADC/2021/10362-10447-C dated 23.04.2021 issued by the Ld.
Principal District & Sessions Judge, RADC, New Delhi, in terms
of directions of the Hon’ble High Court as contained in circular
no. 05/R/RG/DHC/2021 dated 23.04.2021, only urgent cases
are to be taken up through vide conferencing mode and all the
other pending routine/non-urgent matters are to be adjourned
en-bloc.
Hence, in view of the above and as per directions of
the Ld. P.O., the matter is adjourned en-bloc to 27.05.2021 for
the same purpose for which it was fixed for today and it shall be
taken up on next date as per the protocol of Covid 19 prevailing
on that day.
"kindly note that the Company on late hours
yesterday, 05 July 2021, received the directions from Punjab Pollution Control Board (‘Punjab PCB’)
wherein Punjab PCB has given directions for restraining the operations of its unit situated at Dhuri, Distt.
Sangrur, Punjab, in compliance to the orders dated 02 July 2021 passed by the Hon’ble National Green
Tribunal (NGT). This order was passed ex-parte without even issuing notice to the Company. "
Or as I read it between the lines, thr talk was full of jargons & buzzwords. If u manage to listen the audio of this a good 45 mins were spent by these guys never addressing the core issues : -
The legal issue - it was sidestepped being sub-judice
The revenues took a hit this yr despite volume increases vis-a-vis competitors. Why this happened & Wat’s being done to address this?
I’m an investor in KRBL & a user of thr products for some time now but this was the first time I felt the mgmt lagging & losing focus.
Read or listen the whole Ayush Gupta & Priyanka Mittal talk twice & all that’s there is lose focus & confused strategy.
Co-incidentally, within days of thr results & concall the pollution issue surfaced out of nowhere. Interesting!!!
