While I appreciate your sharing nature, such a small size defeats the purpose. You can click your posted image and see, how hard it is to read.
If you got this from someone else, and you have given the image as it is, then it is alright.
1 Like
Excerpt from a news signals upward revision of camphor prices in the festive season which is in favor Mangalam’s inventory.
"
"
Disc: Invested
This confuses me more than clarifying.
Why is 20g camphor costs less than 40g on a unit 1g basis? Shouldn’t it be otherwise? I mean generally if the quantity is higher the price generally decreases per gram/kg basis.
@Sudhakar_Subramanian Probably the 40g packs were newly arrived (or of a different brand ) at the stores where these reporter checked.
I got an opportunity to ask questions at the AGM. However the response was very generic (nothing that wasn’t already mentioned in the AR). It felt more like a formality with no intention to ally shareholder’s concerns. Akshay Dudojwala who takes home the highest salary in the firm wasn’t even present at the AGM.
As i had mentioned earlier, if terpene derivatives sales materialize it would lead to increase in margins and possible rerating. However there are too many uncertainties which make me uncomfortable holding on to my positions.I have completely exited.
2 Likes
@Pratik_Shetty yes, the management was not concerned about shareholders queries. There was no direct answer to questions. The management seemingly not interested to interact with shareholders rather than completing the formality. I think professionalizing the management is best next step the promoters can do to grow the company and unlock value. Lack of transparency and not opening up is actually hindering the value creation by the company - to all stakeholders. Company remains undervalued w.r.t capacities, products and customer franchise, pressure from inputs costs may ease (most likely) and if the realization improves (likely), coming quarters will be better. If the management only wants to publish results and keep quiet, the full potential of the company will be hard to achieve. On the other side, they seem to be hardworking at the plants, so I still think their interests are aligned to grow the company.
Disc: invested.
4 Likes
Seem no improvement yet in camphor WPI prices yet so focused players may continue to face realization pressure. Any view on RM trend?
Management has not been communicating, hence decided to exit. However they put some reason in the notes of the results letter this time. : “The Company has incurred losses mainly on account of inadequate recovery from sales using purchased
high-cost raw materials and fall in Camphor price”. Company is going through the extreme case of low camphor prices and high raw material cost. It may reverse, but that may take time.
Disc: Reduced stake to tracking levels.
2 Likes
Sir, may I kmow the source of this data. Which website do you use to track the price of camphor?
Share price hits 20% UC. Can’t find any reason except below:
1 Like
Not sure how many are still holding onto this stock.
Just out of curiosity pulled WPI data
The camphor prices are falling swiftly. Now the camphor index looks lowest in last 5-6 years.
So the pain may continue.
2 Likes
Further, found this in local grocery store.
Campure mosquito repellent right beside GoodKnight and Allout
Btw, on a Rs/ ml basis, Campure is costlier than Goodknight!
5 Likes
Based on Oriental Aromatics management commentary during the concall, recent capacity addition in camphor may take even 2 years to get absorbed by the market as it is low growth commodity. High realizations immediately post Covid lockdown encouraged many players to increase capacity. Yes, the pain may continue.
2 Likes
any update on the stock…the stock keeps hitting a new low. are they continuing to hold a a dominant player position in the market for their range of products? researching to reach a decision when to let go my position…thanks a lot everyone in advance
Its just that the camphor wpi in india is at all time low currently. Primary reason being excess capacity that has come in last 2. You can take a cursory look at the increase in fixed assets of companies in this area. Also see Kanchi Karpooram. Read concalls of Privi speciality and Oriental Aromatics.
1 Like
It sounds like that they are now to compete more effectively (excess capacity), bringing a downward pressure on their margins. Perhaps the motivation why they are trying to pivot to retail B2C biz strategy. Synergy with Damani’s D’Mart could be useful. Let’s hope the retail strategy starts firing quickly.
4 Likes
Finally found new product range available on Amazon and some products on Dmart app.
Invested
1 Like
Which product would that be?