Also, I was assuming KRBL can sell it to subsidiary, and then resell it to end customer. Obviously subsidiary might take a loss which they might rationalise at group level.
Is that possible ?
Anyway it seems the impact is very low and transient.
What I feel is it’s not only about exports…If curbing the export results in price drop in domestic market it “may” hit margins of KRBL in HoReCa and lower price variants of basmati rice…Just a possibility and I don’t have any data to backup this
Many have received message from NSDL today regarding the debit of KRBL shares blocked for buyback. Company has bought little more than the eligible limit from those who had offered more shares than their eligibility criteria . Expect payin for the same to happen soon
My buyback order accepted and received the payment in bank account today.
KRBL accepted more than the eligible limit of shares in my case.
I got 45% of my shares accepted for buyback. Offered all 245 shares I had and 111 of them got accepted.
Yup acceptance ratio is 45℅ for me as well
For Small Shareholders (value less than 2 lakhs) acceptance ratio is 45% and for others its around 6%.
KRBL is cylical business and depend deeply on rice prices globally. I want to know how to track Rice in India or International price.
Arbitration proceedings have been filed against KRBL in Delhi high court on 7.10.23 by AQM ( Al Qurashi Marketing company ltd ) . AQM was appointed distributor for Saudi Arabia since 2022, this company also claims 33.5 million dollars from KRBL.
KRBL will be fightimg this petition and also believes that the claim is bogus as AQM have not performed their obligations under the RDA ( Retial Distributorship Agreement)
The honorable high court has not given any relief to AQM as hearing was postponed to undisclosed date.
The share price of krbl was down substantially in today’s trading session
The management had mentioned in their last concall about the termination of the RDA with AQM as they were asking for large credit which was against company policy.
1)If this is the only matter for contention than AQM is fighting a losing battle as the terms must be mentioned in the RDA.
2) If there is more to this that management is not disclosing than the legal battle will take a toll on KRBL
Hopefully KRBL comes out of this as a winner and the investors specially small investors have something to cheer about
Disc : Not sebi registered, have a small position in KRBL
Is anyone has idea how long KRBL will suffer because of this litigation and how serious it is? It would be really painful to loose market share to competetor if things get delayed significantly.
There was a recent concall held by KRBL and many questions were raised on this topic, the following are my personal observations
- Saudi is a 1000cr potential revenue (yearly) market for krbl
- since fallout with the distributor there are no sales coming form saudi ( its been almost 2 quarters )
- management has assured that the case filled is a bogus case and are hopeful of revolving it in current quarter
- The management in their last cooncall were confident of finding a new distributor by 15th aug 2023 but that has not happened and are still inprocess of finalizing a new distributor
- With volatility in rice prices, exports dropping, the rice ban imposed by govt taking a toll it is important that the management resolves the distribution issues in saudi and comes out winner in the litigation matter as soon as possible
To add to your statementsthe market size of 1000 cr ,there will be margin erosion as well as exports have better margin.
I think the worst part is how Lt foods is riding the super cycle while krbl is not able to ,these are small windows where cyclical companies can increase cash reserves and as investors for us are handsomely rewarded with increase in share price