ValuePickr Forum

Sintex Plastic Ltd

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?

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HI THERE
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 ?

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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.

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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.

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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…

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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

(Rs crores)

PNB 760

BOB 505

BOI 898

Syndicate Bank 490

P&S 455

SBI 591

IDBI 408

RBL 280

NCDs 1,000

Total 5,388. Cr

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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.

Hello
I want to know the reason why revenue is falling??

WARRANT CONVERSION PROCEEDS (320CR OF THE PROMISED 900) CAME INTO THE GOV AND LEFT THROUGH SOME OF THE FOREIGN SUBSIDIARIES this 320CR with the KKR REFINANCING OF 900CR debt should have kept the CO from going insolvent for atleast 2 years…PEOPLE REALLY NEED TO DO A POSTMORTEM ON THIS else the NAME MIGHT CHANGE WHILE THE STORY MAY REPEAT A 1000 TIMES. SUCCESS STORIES ARE LIKE FAIRYTALES reading Abt thm might make you feel good BUT BEHIND EVERY CO WCH GOES BUST THERE IS A NEW LESSON TO BE LEARNED.

The share price is in upper circuit for past few days. From Rs 1 to Rs 3…thats a 200% gain from March till now…
Can somebody validate my reasoning for this price change as given below

The debt as of March 2020 is now reduced to Rs 138 Crore.
The Rs.1200 crores of Sintex NP SAS (France) sale showed up as Rs.716.13 crores ‘profit from discontinued operations (after tax)’ in the Q3 Financial Results of 31 December 2019. This is how Q3 FY20 showed a profit of Rs.436.31 crores.

There was also a delisting rumor some time back.

SPTL Annual Report 201920.pdf (1.8 MB)

SPTL Annual Report 2019-20. I don’t see anything positive.

  • Promoters shareholding has decreased from 33.74% to 13.11% which is -20.63% change in during the year
  • 95.56 % of shareholders of the company are Residential Individuals and they hold 72.42% shares