Hi Community,
Can anyone explain to me why it’s taking so long for a company like KRBL to find a partner in Saudi Arabia- Is there some resistance from the government?
They have been delaying it for last two quarters, which is hurting their business drastically.
Hi,
I dont think its due to government…in fact their of appointing distributor is more than 2 qrt old. They have been scouting for long, they are not getting someone who does business on their terms. After long they did appoint one, but that disbt. didnt perform as per the agreement and in fact sued KRBL. That didnt hold, the relationship is no longer in place and they are back to square one in terms of finding a new distb.
Disc: invested
From what I recall from the investor transcripts, It’s due to KRBL policy of offering no credit to distributors and they don’t want to compromise on it which makes it difficult.
How come no one is discussing the impact of Houthi Pirate Red Sea Shenanigans, do you feel it’s adequately priced-in the current price?
Company already having distributor issue, not sure how long it will take to resolve matters.
Is there some place I can track the status of the VVIP chopper scam case where KRBL was allegedly involved. I Googled but couldn’t find anything meaningful. Thanks
After bad set of numbers and unable to finalize the distributor for Saudi market, management skipped earnings call itself this time? Escaping from responsibility?
yeah, there’s also some receivable issue in Iran, CFO was low for FY24. Company is sitting on all time high inventory.
AGM is on Sept 13, 2024.
Disc: Exited my position fully
The management has been nothing short of utter disappointment.
Look at performance in comparison of LT foods… A perfect case study on the importance of management.
For 4 years, management is giving one excuse or another for shortfall in performance.
I have sold my position which I held for nearly 4 years after last quarters disaster numbers.
(Maybe they’ll get saudi distributor…maybe…but i cant trust the management anymore)
I have also exited after being really hopeful for a few years. My worry is that they are sitting on huge inventory but always complain of margins being under pressure due to high cost of purchases. It doesn’t make sense. If prices of paddy go up, they should be making better margins , not lower - as the spreads on earlier inventory should increase. Something is fishy in their inventory numbers and that might be the reason they didn’t hold the concall ( other than the Saudi business not returning for good)
worst time to Exit this stock… its only a matter of time before gov is forced to lift the export ban and drop/ get rid of the minium export price on basmati… post maharastra / haryana election…
I am doubling down on this…
just looking at all the pessimism on this thread…
Disc: invested
Just my thoughts, we are in a bull market. LT foods and Chaman Lal setia posted good numbers and share price also reflects in their case. But krbl, being industry leader, is not able to post good numbers and the share price is also going down.
Disc: Patiently holding it for many years hoping for turnaround.
