The board is meeting on 17.05.2024. An increase in authorized capital and issuance of bonus shares is on the agenda.
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The board has come out with annual result- profit has gone up to 37 Cr. with net profit of around 4.5 crores. EPS for the full year has been Rs. 14.84.
The Board has proposed a dividend at the rate of 33% [Rs. 3.30 per share].
Authorised share capital has been increased to Rs. 11 Cr.
The Board has proposed a bonus in the ratio of 1:1
SIDDHIKA_17052024144943_OUTCOMEPDF.pdf (1.8 MB)
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I was concerned with the mutual fund investments of the company, and asked MD of the company following question on LinkedIn-
"Dear Sir,
I am a public shareholder of the company.
Many congratulations on the excellent results.
I see investment in mutual funds. Why is the company investing in mutual funds? Is it merely cash management or company is conserving resources for some future event? Kindly let the shareholders know.
It would have been very nice if the company did some sort of investor meet. It helps the company keep shareholders/public informed.
Thanking you,
Rajesh Kumar"
very quickly I received this reply from the MD,
*"Dear Rajesh Ji, *
*Thanks for your trust on Siddhika. *
*It is cash management only & we will try to add a note on this during upcoming AGM for more clarity. *
*I would request you to please consider joining AGM & please do share your queries as well. I am sure that will help for the purpose. *
Kind Regards,
Charitra"
I am very satisfied with the response.
I am also happy to note that the company care for shareholders and their questions.
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@rk1771 ,
Did you get a chance to attend the AGM ? If so, can you please share the notes ?
No, I was not able to attend AGM.
The company has come out with great results. Topline has grown by almost 50 percent, whereas net profit has doubled.
Outcome_of_BM__08112024135250.pdf (5.6 MB)
@rk1771 Seems like the topline along with the margins are growing consistently. I also see working capital days have increased recently. What are your opinions on this development.
Also did you get chance to ask management what will they do with the Mutual fund investment money. Is there any capex planned or they being getting conveted to a full fleged paint company
Thanks
Management stance is consistent that mutual fund investment is for cash management only. They stated that in AR also.
They do largely project works, i.e. painting of large buildings. A few delayed payments can increase working capital cycle.
Will they become full fledged paint company?
The answer is yes, in the sense that all paint companies are created in this manner only. Latest being Sirca Paints. When, nobody knows. There is no indication from management.
In the meantime I expect the company to grow at a decent pace, may be around 15-20 percent with intact margin. The reason for above average growth is, entry of organised sector in large unorganised market where organised sector is taking market share from unorganised ones. Let us be happy with that.
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