Shaily has released the Annual Report:
http://www.shaily.com/userfiles/file/annual_reports/Annual%20Report%202015-16.pdf
Couple of highlights:
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Company started a new project, last year named CRC Project for development of business. The major products are CRC Cap, 120 ml Bottle, 100 ml Bottle, 60 ml Bottle, 40 ml Bottle etc., and is working with various Pharma Companies for sales of the same.
- Company is targeting for $100 million sales by 2020, with current sales at around 225 Cr.
Not that it’s impossible. But to do this:
a) Company has to move up the ladder & cater only the high value added / High margin products. Even though the company is doing it currently to an extent, this clearly says targets are little aggressive in nature.
b) Not to forget Amit Sanghvi in his recent interview said the margins can expand upto 18.5% this year (on a positive note, there was a continuous improvements in margins year after year). This may boost the PAT little faster to achieve target.
c) Management has also said they are open for any acquisitions. And this can be a trigger to achieve the 2020 target.
d) Another major booster: IKEA to expand aggressively and plans to open 25 stores in India by 2025, with first store coming in Hyd by 2017. IKEA wing of Shaily had grown at 170% CAGR for last 3 years.
Over all, I feel Amit has set himself high targets. I will be happy even if they reach little close to it.
Disc: Holding