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…
Good results by Premco. Consolidated profit Rs 3.61 Cr (Q1FY26), growth of 21% yoy. Consolidated sales Rs 29.68 cr (Q1FY26), growth of 9% yoy.
After long time, we see growth in Vietnam business (derived as Consolidated -standalone sales) and Domestic sales (Standalonw business) reported growth on Top line as well as bottom line YOY.
The consolidated profit is highest net profit in last 10 quarter. The highest consolidated profit reported was Rs 4.74 cr in December 2022 quarter.
This quarter results also have Rs 0.40 cr compensation paid to labour in Domestic market to consolidate manufacturing facility which is shown as exceptional expense during Q1FY26 quarter result.
The management also declared first interim dividend of Rs 4 per share (100% growth from Q4FY25 final dividend 2 per share and Q1FY25 dividend of Rs 2 per share)
We need to closely monitor a new CEO of the company as current CEO Mr. Panwar has resigned from the post.
Disclosure: Among top 10 holding in my equity portfolio and hence my view may be positively biased. I am not SEBI registered advisor. I am not recommending any investment action. I may increase/decrease/exit my equity holding in the company without informing forum. I have not executed any trade in last 90 days.
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Company has gone into losses.. as expected.
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Completely in agreement. There seem to be issue with Management about lack of hunger for growth. The domestic capex is not yielding any results. But for Vietnam operation, the Indian operation are worst (at the best) and disaster (in reality). Very poor management of affair. Only silver line was Dividend payment even in such bad quarter.
Discl: Among Top 10 holding, No change in last 3 months. I may exit/increase/trim my holding without informing forum. Not recommending any investment action. My view may be biased.
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I attended Premco Global AGM and seek management view about the past performance and future expectation.
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Vietnam operations: The performance of company was adversely impacted in FY26 because even Vietnam was subject to around 20% duty on US. While impact was lower but still affected volume. Vietnam has production capacity of 7.5 mn. mt of Elastic and plant operated at nearly 75% utilisation level during last year.
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In India, current manufacturing capacity is around 10.5-11 mn. mt with capacity utilisation of around 50% during FY2026. The company is consolidating operations at new Umergoan and Vapi plant. It recently closed operation at Palghar plant and sold during FY2025. The proceeds were distributed as special dividend during FY2026. Indian operations were hit majorly during FY26 as US tariff of 50% on textile adversely impacted direct and indirect exports. Further, the cost of raw material, i.e. Polyester/Nylon and Rubber prices are dependent on Crude as crude derivative are key inputs. As a result, the price raw material increased materially. While the company would pass on the increased cost to the customer over long term, it negatively impacted FY2026 results.
Future outlook:
The company would aspire to reach Rs 200 Cr turnover in next 5 years. It expects to maintain operating margin of 17-18%. Also, added multiple customers in domestic market which have higher requirement. The company is putting special efforts to develop new products. As per management view, nearly 20% of employee cost is related to employee efforts in developing new products. The company expect to gain from normal raw material cost (which unusually high during FY26 due to higher crude price), operating leverage in Indian market (with production consolidated between Umargaon and Vapi plant which has higher scale of operations and hence lower manufacturing cost) and improvement in geographical market. While US market appears seen the worst period for Indian exporter, thing would improve from past years. Also, the Bangladesh which was major market impacted to political uncertainty also recovering in textile trade and hence company expect better performance.
Recently, Hanes, the largest customer of company, was acquired by another competitor Gildan in December 2025. Since, the company is supplier to Hanes from Vietnam plant and Gildan from India plant from its Bangladesh manufacturing facilities, and hence expects the integration of operations will benefit the company.
There are multiple moving parts and hence probability of company achieving is project topline is low in my view.
Disclosure: Premco is among my Top 10 holding. I have added small quantity today before AGM. MY view may be positively biased due to my holding. There might be some communication gap/error at my end and reader shall take note of same. I may change my view without informing the forum. I am not suggesting any investment action to investor. I am not SEBI registered advisor.
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