I will add few points. Biggest thing is management is very much honest. I am holding since 2005 and not a single day I had doubt for their honesty. Second is very low equity and float . Few points improvement in sales and margin can bring wondered in eps . Rest all has already posted by @dd1474
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@HIMSHAH
That’s the perfect way …
It’s very meaningful if u can disclose ur portfolio…
Thanks🙏
I am invested since 2005 , and have disclosed it many times in my previous posts
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Can you talk about your learning, experience w.r.t holding a company for so many years, even returns, if you want to? Considering you must have bought it after getting employment, or in early 20s, what made you not sell, assuming the allocation is not big, so it does not matter if you sell or hold, as it does not make any meaningful impact?
I have not come across too many instances in the forum where members have held companies for so long.
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My cost is around 13 rs. I had good no of shares out of which I have sold some whenever I wanted to book profit. My holding reasons where 1) small equity and floating 2) it was paying dividend since long so yield is always good. 3) honest management. 4) biggest is luck favoring.
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Analysis is very good.
My only point is this is very competitive industry and margins will come down to pre COVID levels - especially when you want to increase volumes. Volume is not increasing as they dont want to reduce margins. So effectively company will stagnate at this level of sales and at same time be open to increasing competition with expanded capacity (which was not required at all !!).
Given all of this is the PE of 15x plus justified… to my mind it should be around 10x.
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Most likely Q2 numbers are going to be flat or even lower. Companies in industries with 80% small and unorganised players returns can never be high.
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Company declared 39 Rs special dividend
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and price went up by Rs 150… even when quarter numbers were not good… what is the sense?
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post special dividend the right price is 370… i.e 410 - 39.
Profits are down… when garment industry is in boom… i think this company has lost the plot… better to exit before there are no buyers…