One More Subsidiary in GHana
2 Likes
Seems Procurement going to be 1000+ Cr in Near Future
200*5 Subsidiary(Ghana is not mentioned in Notice) + Domestic Procurement
How much of it will be saleable could be the question.
Does anyone has readymade(extracted) data for 500 cr of annual sales how much procurement they did ?
it will give us idea.
1 Like
Is the company not conducting a Concall for Q2 results? I thought with Q1 results, they started the practice of conducting quarterly Concalls.
Doing concall is not compulsory. They may do it once a yr or twice a year / every quarter.
1 Like
Adding a very informative video by Kartik Khanna
2 Likes
Sale of shares by promoter group.
2 Likes
Three fund houses (Bank of India Mutual Fund, LIC MF & Birla Sunlife Mutual Fund) have entered into the stock; via the sale of shares.
4 Likes
All rounder performance by the Company
https://www.bseindia.com/xml-data/corpfiling/AttachLive/25292413-b204-4ff2-a718-60440fb6ee99.pdf
Finance Cost seems too high.
After Company received IND “A-” from IND “BBB+”
it shall come down
1 Like
Adding some views by a friend
Company can do 40crs + pat in Q4FY25
Which is equal to fy24 PAT
And I feel next year company can do more than 200crs pat
And new capex announcement is come
Currently they are 40000 mtpa
Next year they can added more 20000 mtpa
If coco butter price go up more then clients prefer more CEBA
But max can be only 12.5% mix in India
Also they are increasing value chain
Which can be seen in margins number
For remaining 20000 mtpa no need of land
Post 20000 company can buy land
FY26E
I feel 250-300 crs sales every 3 months
PAT can be 200crs
PE can be anything
Because currently Roce is looking not so great which will be very big post q4
Also soon company will be free cash flow postive
No need of external cash for growth
Africa business is same as indian business
Raw material cost is going down so GP margin is increasing
Asset turns will increase soon
7 Likes
5% is the max allowable limit for cocoa butter alternatives in India as per FSSAI, unless something has changed recently:
5 Likes
Seems like routine profit booking/ part of rebalancing exercise from some Family Offices, etc. It had a similar ~25% sharp correction last year in March '24 as well
2 Likes
Hi Devsuman
Whats a tracking position in % of invested capital?
Considering the recent price behaviour are you planning to increase your exposure?
Regards
Swami
1 Like
Hi Swami,
I have 2.75% now in Manorama. I might add after Q4 results. I did add 1%, after Q3 results. The sales growth was 112% and profit growth was 297%. We can not control market prices and sentiments therefore can not make decisions based on price movements. My process is to build slowly quarter after quarter after reading the transcripts. I analyze management guidance, their confidence and tone. If I observe that the speed of growth is maintained, the management is confident and focused I buy, irrespective of the price movement. If the growth starts coming down and operating leverage is vanishing, I start cutting the position. The process is purely based on sales and profit performance and management guidance etc. Reward the stock for performance and punish when performance goes down. Every investing choice (like most other choices in life) is a leap of faith. We choose something based on present evidence. We review periodically and change if things don’t work out – no harm, no foul. As with life, we live and learn. I must not be smug about my investment choices and stop assuming they are the best.
Disc: Still very small holding of 2.75%. I am very biased & still tracking the business. Not a buy/sell recommendation. I am not capable of giving any advice. Views are based on my very limited knowledge. Many a times I was & I can be wrong in all my assessments.
8 Likes
Q4 results are out which are good. We need to understand from management - “Why company is carrying an inventory of 500 crores.”
Debt is also very high at almost 500 crores and cash from operation is negative 60 crores.
Also company has made a mistake in presentation in calculating working capital days. According to company’s presentation working capital analysis for fy25 is 151 days. What in heaven is “Working Capital Analysis”???
According to my calculation working capital days are 439, which are very streched!!!
Questions which can be asked from management -
Question 1: Working Capital
“Your reported working capital days in the presentation is 151 days, but by standard calculation using COGS and average balances, it comes to around 439 days. Could you please clarify the calculation method and your plan to reduce this working capital intensity?”
Question 2: Inventory Build-up
“Inventory at year-end is ₹549 crore, which appears large relative to the revenue. How much of this is raw material, and how much is finished goods? What is your strategy to liquidate this inventory in FY26?”
Disclosure - Not invested.
9 Likes
I’ve just completed an initiating coverage report on Manorama Industries Ltd. 
Would really appreciate it if you could go through it — I’m open to all kinds of feedback or suggestions to improve it further.
Thanks in advance for your time and support! 
Manorama Industries Ltd. Research Report !.pdf (1.4 MB)
14 Likes
Excellent work, brother!!
What are the odds? Your page 13 is a perfect match for mine, down to the last word. Coincidences like this really make you believe in magic. Feel free to verify, check the timestamp 31:50 on my YouTube video, which I posted almost a year ago.
Link: https://www.youtube.com/watch?v=PCvvaxSmc_k&t=2411s&ab_channel=kartikkhanna
1 Like
There’s a very interesting book Narrative and Numbers by Prof Ashwath Damodaran. The narrative and numbers for Manorama are going hand in hand.
Manorama has all the ingredients for sustained growth. The consumption story in India is here to stay with rising disposable incomes, shift from rural to urban.
Chocolate based products are gaining prominence over traditional sweets. The display shelves in grocery stores offer a large variety of spreads and chocolate coated nuts, there as a large variety of gift packs of chocolates on Diwali, Raksha Bandhan and other festivals.
Overall a great story to invest in and the last few quarter results substantiate the story.
6 Likes