MCFL results are due on May 30 but I’m not expecting the Company to meet management guidance.
The management has been repeatedly giving a guidance of 10-15% growth, latest in Feb in an interview with CNBC.
FY 2014-15 full year turnover - 582.58
9 month ended Dec '15 turnover - 556.95
FY 2015-16 turnover (15% growth) - 669.97
Q4 turnover to meet guidance - 113.07
FY 2014-15 Q4 turnover - 65.74
Although it seems baffling that MCFL’s Q4 turnover was 1/5 of Q3 turnover considering winter wear sales remains steady atleast until end of February in North India.
Even at guided growth rate and steady FY15 OPM margin (as claimed by management), NP growth is ~25% assuming there are no shockers in operational costs. The Company trading at 15PE still appears overvalued.
Disc. - tracking, not invested.