the management has been saying for the past 1 year tht thy r bringing down the gov aka prefab revenue wch has infact transpired but though the sales in prefab r down by 600/700crs thr hasnt been a reduction in working capital loans nor has thr been a reudction in long term loans evn though promoters gv infused 350cr worth of capital via warrant conversion
IIFL has given a positive view on SPTL…
Sintex Plastics, a leading player in composite plastics space, is a re-rating candidate owing to better cash flows from shift in business focus and promoter infusion leading to deleveraging; valuing at 8x FY21E EPS.
Today management has issued a notice that they are doing everything possible to deleverage the company in the interest of shareholders, this is probably being done to address the recent stock crash from 25 to 18…But can someone tell me why the leverage doesnt appear on the balance sheet . Is it due to “fccb” as already discussed above on the thread? I am referring moneycontrol march 2018 data…
Hi I am new to valuepickr and a prospective investor in Sintex Plastics. I found some discrepancy in the note no. 3 of the latest results. Their total revenue ‘not reviewed’ (679.2 + 2965.83) for 9 months ending is actually more than the total revenue reported for the same period by about 2.48 cr. How is this possible? Am I missing something? Screenshot_20190209-150555_Adobe%20Acrobat|243x500
IIFL has been harping it since it was 80/- what of the investors who took their advice then?
I HAVE CERTAIN RESERVATION ABOUT THE WORKING OF THIS COMPANY AND I FIND KEY RISK ON THE COMPANY AS SUCH
• WHERE IS THE CATCH?
• VERY ROSY PROJECTION PROVIDED
• ALL SEEMS GOOD OR VERY GOOD
• STRATEGY SEEMS ROBUST – VISION 2020-22 PROJECTS VERY ROSY PICTURE
• BUSINESS IS GENERATING PROFIT AS WELL AS FREE CASH FLOW
• DEBT IS REDUCING CONTINUOUSLY: FCCB CONVERSION / PROMOTER EQUITY / CASH FROM OPERATION. STILL INTEREST COST IS INCREASING
• CLARITY ON REVENUE AND PROFIT NOT PROVIDED DIVISION / SEGMENT WISE
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Are u still holding STPL. What’s your take now ?
SPTL has definitely increased its advertisements at neighborhood shops, advertisements on moving vehicles etc. in Hyderabad.
Does anyone has any idea if the company has recently communicated on the speed of execution or plan to increase sales?
Most importantly, if the company increased advertisement spends all over India, does it have the game plan to increase revenues and profits?
Absolutely horrible results by the company. Not only did they miss guidance, but the company reported loss for the quarter. And to think that the management wants to sell off their ‘growing’ Automotive division, which was expected to significantly contribute to top and bottom line from FY21 (owing to BS VI norms)
Don’t think any reversal would be possible from here. I exited sometime back.
All the best to those still invested.
Good you booked loss and exited, seems like a slow death is coming! Very bad judgement made in this group, big big lesson, stay away from Companies with debt!
Agreed. Expensive lesson learnt.
How could we have spotted this issue? Debt is one. But value investors do invest in companies with debt. Can a veteran value investor in this group, do a post mortem?
I am no veteran. But it does not take one to find this stock to be a junk. The management had over promised and under delivered for over a decade now. They had a good brand a decade back and run it to the ground now. Questionable management, questionable acquisitions, huge negative cash flows, ever increasing debt, low ROE. In a way there was absolute no reason for a value investor to buy this stock (or Sintex industires) at least in a 10 years. It could probably attract a turnaround specialist who would probably buy it for pennies when things settle down.
The debt didnt reflect on the balance sheet though. It was in the form of FCCB… so to a novice, who does the basic balance sheet check before buying, it appeared like a fine company bouyed by the positive commentary by some brokerage houses like ‘ventura’ which further added fuel to the conviction plus the stock appeared cheaper as compared to the peers like Neelkamal etc & the final check of shareholding by marquee funds like Eastbridge, Barclays and Morgan gave the necessary comfort…But like they say “the devil lies in the details”…
Disclaimer : bought very small qty as an experiment at the time of demerger. Happy to pay it as tuition fees for discovering the camouflage…
SINTEX INDUSTRIES LTD. - 502742 - Intimation Under Regulation 30, 51 And 57(1) Of The SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015
Sintex industries defaulted on NCD worth RS 110crs. It has total debt of over Rs5000 crs.
Sintex industries bank wise exposure
Syndicate Bank 490
Total 5,388. Cr
hello the debt to equity is 0.9 is now??
no i sold after not getting any clarification
bought at around 20-21 and sold for minor loss
If there was any value in the company, the promoters would have bought back a lot of shares by now. Lack of buyback is a negative signal. Wonder how much loss KKR has suffered but they had invested in Sintex’s debt.
I want to know the reason why revenue is falling??