premcoglobal_results.pdf (3.0 MB)
Finally some hope for investors. Great results with interim dividend
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Now it’s becoming very interesting bet!!
Are u attending AGMs since last 10years??
How does this happened??
My question is exactly same??
@Kuldeepjadeja , I am attending agm since many years and have investment also since many years. Still today’s date not a single move my promotor has raised any red flags,
They have around 21 cr in mutual funds which u can find from AR
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While I have no interest in Premco now, I can vouch for at least two AGM in past 4-5 years where I happen to meet Mr Shah in Premco AGM. I understand from him that he has been long very actively observing Premco performance over years. Secondly, in past I have also invested in the company. I also feel that Premco has issue of execution and headwind in industry then wrong intent of managment. This is my personal view and I may be wrong. I exited from compaby as they were not able to get sufficient order to operate at full capacity in domestic market as well as not able to scale Vietnam operations in last 3-4 years. Secondly, the managment could have use large liquid resources more productively by share buyback rather then investing in MF. This was my view and again it could biased and may be wrong in long term.
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Management is definitely ethical. But my biggest disappointment in the company is the efforts from the founders. The founder’s son looked highly capable. But still, they hired a CEO to run the company in India. An outsider, and a person without any experience as CEO. I still don’t know why? That CEO stayed in the company for around 2 years. I would say his contribution was total zero. After earning a very high salary for 2 years, he left the company. Now they have hired another CEO who also don’t look very impressive to me.
Some feedback from employees in public forums
“one can learn in this company s everything is self-driven, management doesn’t interfere in anything”.
“management not in action for anything”
“This company Management is not working properly” [Source: Indeed]
It seems the founders are content and happy with the current wealth that they have built. There are companies where the next generation took the company to great heights. Eg: V-Guard, Ajanta Pharma, Vinati Organics. Whenever next gen took over, I considered that as a big positive and a trait of a multi bagger. But that doesn’t seem to happen with Premco in the last few years.
Another feedback:
“Business is accepted based on mood and requirements. Quality parameters not adhered based on the buyer spec and requirements”
I always thought Premco was innovative and was able to come up with some of the expected latest requirements in the market. But after looking at some comments in online forums, i found out that they don’t have any great competitive advantage in terms of design, or in building innovative products matching market expectations. In current world, without innovation, i don’t think it is easy to command good margins, especially in textiles.
As Dhiraj bhai mentioned, one critical component of an investing thesis playing out is execution. Unless a company’s team walks the talk, they will not be able to grow as anticipated. An ethical management alone cannot win it but you need doers, and strong characters in top management who can execute well and help the company to reach the next level.
Over the last few years, this company’s core team would have learnt lot of harsh lessons. Also, after a long time, they have come up with decent results. Let’s see if they have anything to reward investors in the next few years.
Disc: Not holding now
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I think the Vietnam investment was planned as a response to Trans Pacific Partnership signed between the U.S. and East Asian / Pacific Rim states. But after Trump became President, he pulled out of the TPP rendering Premco’s Vietnam expansion redundant.
Can someone explain the rationale behind price movements? did they get new tender? or its just the corona PPE kits surged for the movement?
Also noticed that they are recruiting people in Vietnam via - Linkedin.
@HIMSHAH : your views please…
Disc : Not invested, planning too.
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I don’t have any specific news. But they are getting dual benefits of ppe kits and elastic demand as well as Vietnam subsidiary helping China plus 1 policy
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EXCELLENT REULTS .this year eps can be easily 35+
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Agree excellent numbers and pleasant surprise by mask elastics contributing significantly as well.
An extract from results
“(i) Company’s Revenue from operation were higher by Rs. 519.99 Lakhs in quarter ending Dec 2020 as compared to comparitive quarter last year ending Dec 2019.
3 This was due to an Upsurge in Domestic Sales , over corresponding period last year and continued sale of mask elastic. Company expects the demand for its products in the Exports
Market and Domestic Markets to continue, with a thurst on New value added products.”
Company declared 20. % 2nd interim dividend , totalling 40 % interim dividend for this year.
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Q4 FY21 results announced. Good set of numbers. https://www.bseindia.com/xml-data/corpfiling/AttachLive/cb334485-041d-49c8-9daf-031b4be19332.pdf
Discl- Invested
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Also company declared 40 % final dividend totaling 80 % total dividend. From last two quarter company shown eps of 16 each .so next full year it can easily make 60 + eps
Biggest change i see in their change in mindset. in best time few years back they had not given dividend more then 25% and this year they gave total 80 % , i hink they now see more clear visibility in their growth in future years.
disc invested
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https://www.bseindia.com/xml-data/corpfiling/AttachLive/0305417d-86af-4bfe-bb6a-d3733c2eba0b.pdf ,
In support of my statement in above post. I will add , they must have clear visibility of profit and the results of March 21 is not one time COVID business. They are again declaring 1st interim dividend on 12 th aug meeting.
If they are not flush with fund then they won’t pay two dividend in short span of month or two
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Good results all around. Standalone q-o-q did pretty well, given the lockdown. 3/- dividend. Hopefully shud do a 70 eps this year.
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Good results back to back 3 quarters and consistent dividend should rerate this stock.
@hitesh2710 , HITESHBHAI is this cup and handle pattern ?.
good rounding bottom has formed in weekly chart with excellent results since last 3 quarter
disc invested
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Promoters purchased shares two days back at even this rate gives good confidence . They must be sure that this extraordinary results of last 3 quarters will sustain in long run
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@HIMSHAH
On 8june2020 i was reading all ur replies in this thread and i was totally convinced with ur predictions and conviction on premco.
But unfortunate i bought very small quantity.
Now still i find more room and trying to add more.
Congratulations to you on huge returns in premco global 
Thanks
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Thanks . Only issue with premco is that they don’t give enough details in agm or any results. Reason once they told that they are constantly under watch from their competitors and they can’t disclose more. Even I had seen such guy once in their agm making unnecessary noise.
Best I like about the company is promotor’s genuinity and that was my reason for holding this shares long even when their was decline in performance .
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