Sirca Paints India has fixed 11 May 2023 as record date for issuance of bonus equity shares in the proportion of 1 (One) equity sharesof Rs. 10/-each for every 1 (One) existing equity shares of Rs
So what would be the last date to buy the share to get the bonus share.
Anyone can help pls
Record date is the date by which the shares must be in your demat account to be eligible for bonus, split or dividend.
In this case, you need to buy shares by May 9, 2023 to be eligible for bonus shares. Since both the exchanges and all stocks have now transitioned to T+1 system, the shares will be credited in your demat by May 10, 2023, making you eligible for bonus shares. This may work even if you buy shares on May 10, 2023, as the shares will get credited by May 11, 2023 but I wouldnât risk it.
Thanks . I have been tracking the company since long time. Heard first time from Prasenjit Paul. But i always find its too much overvalued. EV To Asset =
5.36 /// Price to Sales = 6.62
The Company is doing well, products are Unique. But Skeptical due to overvaluation
UnderstandableâŚThe way I do it is that learn a bit of technical analysis as well and then take a tracking position of say, 1 share. It will be easy to track it as part of your portfolio than as an item in a wishlist. Then as things evolve, buy it in tranches. Break up your entire purchase/position in 4 to 5 separate tranches.
In addition to the above talk on over valuation, [which I completely agree with and is the same reason that I although liking this company have never gained confidence to build up a position], the bigger question to answer is also that should/would the paint companies now demand higher / rich valuations in the current scenarios. Current scenarios meaning new entrants in the paint market coming every now and then. I agree Sirca has a niche with the type of paint product they are offering but the entrants are so big that nothing would stop them to give them a fierce competition.
The play in Sirca seems to me the growing of margins [manufacturing shift] and hence the bottom line for the company in coming years.
I would welcome more inputs or rebuttals.
Disc. - Not Invested
Absolutely right. Actually i have done so for few scrips already , have 1 or 2, then tracking becomes more easy
Sircaâs predominant business is wood coating products and paints is just an add-on business for them. IMO, their business is not entirely comparable to the likes of Asian, Berger, Nerolac, JSW etc., which are more into paints.
@Bimal_Purohit @abhishek_sinha1 please watch Neil bahal video for better understanding of Sirca.
SME Alpha Ideas Sirca Paints - English - YouTube
It has been 6x from ipo ,
They have been doing in wood coating business
Understand market of wood coating paints and not compare it to wall paints
Sirca has their own advantages and areas
I know they are also selling wall paints
I m in Sirca for Pure value and fundamental play like warren buffet will hold this stock for 20+ years until retirement until regflag comes
It has been coming under rule of 72 , where your stock should give 26% per year is enough as per value stock ( multibagger list) ( learnt from mohnish Pabrai with Manhattan example )
Sirca has given investors 26% per year in past many times
Disclosure : invested 30K , have money constraints max allocation is 1L for every small cap company in portfolio. Avg price ~ 611
Results, please verify the numbers before acting on them:
| Results | 31-Mar-23 | 31-Dec-22 | 31-Mar-22 |
|---|---|---|---|
| Revenue | 6,939.00 | 6,521.00 | 5,409.00 |
| Other Income | |||
| PBT | 1,298.00 | 1,415.00 | 906.00 |
| PAT | 948.00 | 1,053.00 | 639.00 |
| EPS | 1.73 | 1.92 | 1.13 |
| Growth | QonQ | YonY | |
| Revenue | 6% | 28% | |
| Other Income | |||
| PBT | -8% | 43% | |
| PAT | -10% | 48% | |
| EPS | -10% | 53% | |
| â | â | â | |
| Margin | 31-03-2023 | 31-12-2022 | 31-03-2022 |
| OPM | 19% | 22% | 17% |
andâŚ
| Results | 31-Mar-23 | 31-Mar-22 |
|---|---|---|
| Revenue | 26,774.00 | 20,002.00 |
| Other Income | ||
| PBT | 6,210.00 | 3,795.00 |
| PAT | 4,611.00 | 2,772.00 |
| EPS | 8.41 | 5.06 |
| Results | 31-Mar-23 | 31-Mar-22 |
| Revenue | 34% | |
| Other Income | ||
| PBT | 64% | |
| PAT | 66% | |
| EPS | 66% | |
Link:
Sirca Paints Q4 concall notes-
⢠Company is not able to realize full potential in Q4 due to construction and spray painting bans in Delhi, NCR. Co witnessed a slower offtake in Jan and Feb, however momentum was regained in Marâ23.
⢠Strategic initiatives:
ďź Launched Oikos (https://www.oikos-paint.com ), a globally renowned luxury brand in India. OIKOS specializes in decorative solid color finishes and texture paints.
ďź Manufacturing agreement with Sirca S.P.A Italy. Company has now acquired the rights to manufacture 10 different polyurethane wood coating products in India, which were earlier imported from Sirca S.P.A Italy. These products roughly make up 50% to 55% of the companyâs total revenue of Italian polyurethane proteins. And thus, it will allow us to cut down our import bill, optimize greatly our inventory days of finished goods. However the savings will be utilized towards advertisement and promotional activities.
ďź Company also has recently launched a new water based days coating range, DâAqua PU. In line with global trend of transition from solvent-based coatings towards water-based coatings.
⢠Oikos- A special texture paints â as the market is now moving from wallpaper to special texture paints â niche product.
⢠70% of the revenues are from north india 30% rest of india now they are planning to be as big as in rest of india
⢠Capex of Rs 15cr lined up, which can generate additional revenue of Rs 190-200cr at peak.
⢠Current utilization of capex is 30-35%. Manufacturing of 10 products which were earlier imported and now will be manufactured in India, which contributed to almost 50% to 55% of the imported sales we are expecting that the current facility in this financial year will reach to almost 80% utilization. At peak topline will be Rs 400 cr.
⢠Company inventory days up due to logistics issue especially in Europe. However considering the company will manufacture Sirca Spa Italy products in India and will source the 99% raw material locally.
⢠Inventory days will be reduced by 50%.
⢠Expecting a CAGR of 40% growth with EBITDA margins to be 21-25%.
sir how is your avg price is 611rs where as sirca paints high/low is 400/201
Pre bonus issue price.
Seems like q1fy24 will be a blast again. This is just like last year. sequential slow down in q3,q4 and then bang in q1 and q2. This is a buy and hold forever type co imo.
I think there was some forex loss this quarter.
Company said this kind of margins will be same for 3 years and then we can see some change
Also , partnership with oikos will be much better than san marco , as san marco had relations with Asian paints , so they took decisions and done partnership with oikos
They are various competitors coming in the market and giving competition to Sirca
But They are dumping cheap normal product and not focusing on technical
Whereas Wood coating is kind of product which needs technical support
But competitors have no technical support and dumping products as commodity
Environment is changing , Sirca is facing competition
We have good quality products and good technical side
That why company is spending good amount of money on Advertising
They are also trying to building relationships with local dealers and other potentials ,
Previously , people use to hire architect and build home , where Sirca had catch , due to architect referred our product in terms of quality
But nowadays people need readymade furniture and so demand in retail is decreased
They said Sirca can get sales as they will do sales to oemâs
Company is on right track with spending on advertising and doing capex
Great summary. I guess, they also added few additional mixers as part of capacity addition.
Thanks Sameer,
Yes, They have added six new mixers which will increase the capacity by 18000/day and 54 lac/year.
The spending on advertisements is coming from cutting down import bills by manufacturing it in-house thereby saving about Rs.50/litre.
According to me, current valuation of 30x PE is not very expensive where leaders are getting 70x PE.
I will keep on tracking below pointers -
As many big players are already there, it is not easy to grow at such speed with maintaining margins for company like Sirca of such a small size.
Management is also putting alot of efforts here. Keeping 2-3 years timeframe and tracking closely.
Expecting approx. 80-90cr PAT in FY25.
D - Invested
Just an update ,
Did Market Survey of Retailers shops where whole area goes to buy paints for home and offices ,
I interviewed one retailer shop , who was in mid 30s with father son business and
He was previously interviewed by People from Marcellus and Aquarius ,etc
Location : - Ghatkopar . Mumbai
Answers / brief about paint industry and Sirca were : -
Sirca is Good company with good products but market presence in Mumbai is lacking
He knows Sirca well as brand but he says if brand penetrates in this region they are happy to sell. But currently they are lacking it
As investor , I thought wood coating meant Sirca in lead and other might not much that great
My idea was wood coating meant Sirca
But he said there are 20- 25 companies in wood coating , which are targeting this market and doing business
He says in Mumbai , ICA Pdilite is leading and they would also provide technical support and technician will come to your house
According to his opinion , ICA pdilite will be market leader and better position regarding comparing to whole India region
He also open to say that paints industry is changing and will see change in 2- 3 years
JSW , Aditya Birla group , indigo paints , Shalimar paints , pdilite and MRF , Kansas nerolac
He said Brand which dominates wall paints will also dominate wood coating sales also
I asked about indigo paints by starting as their promoters are good and he said yes , indigo is also has good image and presence
He also visited Delhi and seen Sirca paints and Apoorva Agarwal but his conviction as per current market was ICA pdilite and interests with other companies entering market
As investors myself , I will continue to have positive image over Sirca and will stay invested in Sirca and have trust in financials and margin in Sirca
But as market scenario , if ICA pdilite is listed and I will study it
Will study more companies like indigo , Shalimar paints
Problem is my conviction is little bit dropped , due to market reality
I might see importance to perform Sirca in Mumbai and as biased towards home ground
Which is lacking ( hope Sirca does increase in these areas also but ICA pdilite has strong presence)
Will only accumulate only at if at attractive lower levels and will not increase accumulation of Sirca if premium pricing is seen in future
But Still will hold for 20 years to see Sirca doing miracles and doing good business
Last but not least he said Sirca has downgraded San marco products and value of san marco was good before sirca and also when asked , reply for oikos paint is it doesnât have through retailers but through architects reference
That is kind type of oikos paint is
Discl ; invested and have holding in Sirca and Asian paints
Other memeber please share your views too if possible
