Not sure, which one you are referring to, but if I look at the company disclosures to NSE, they have done their disclosures w.r.t. related party transactions on 27.May.19 and 25.Nov.19. So everything is open check their disclosure on those dates. Source of this confirmation is same NSE link which i posted. Hope this helps,
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Sirca Paints India recently featured among India’s fastest growing companies.
India’s Growth Champions 2020 ranks nation’s fastest growing companies - The Economic Times.pdf (1.5 MB)
As per email note received from the company, Sirca Paints is working on to list in BSE platform too. According to them, the company once comply with 2 consecutive years of dividend payment, they are eligible for BSE listing. Just thought of sharing this update.
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Yes I feel too much optimism around here
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I was reading through some old stuff on Crude oil price vs Paint industry. It is no brainer that “Falling Crude oil prices is a margin booster for Paint industry”. Falling crude oil prices should bring cheer to paint companies, as crude derivatives form 30-50% of total input cost.
I was further reading few analysts estimates. Shah of Kotak Securities in the past mentioned, “As per our analysis, every 4% fall in prices of crude oil derivatives impacts margins by 50 basis points, or bps, and earnings by 30 bps. Of course it is very difficult to put an exact figure due to the complex mix of materials used by paint companies.” No doubt, the margin boost is not overnight, but definitely improves during the quarter or next.
So for the paint sector, lower input costs along with improving demand scenario will drive good gains. The reason for bringing this point now (thanks to corona virus) is; the crude has been falling for last few weeks as you can see in the below chart. It has nearly fallen 34% since Jan 2020.
So i am, just wondering what it means for a company like Sirca Paints, who have started manufacturing their own paint and coating products in India. Is it fair to assume, there would be some improvement in their margins and earnings, yes i agree that their capacity utilization may not be more than 25-35% due to new facility; nevertheless a noteworthy. Just thought of sharing my views !!
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2 important outcomes of today’s board meeting;
- Declared an interim dividend of 15% (Rs 1.5 on FV 10), which seems higher than their maiden dividend last year.
- Authorised the directors to sell off company’s warehouse located at C-47, Vijay Vihar, Phase II, Rohini, Delhi. I am not sure how big is it and how much cash it will generate from this sale.
Source of information: NSE filing.
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I am truly astonished by the strength shown by sirca during this market carnage. Seems informed pockets are cornering it. Any price below 300 would be great to accumulate
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It seems some misinformation has been spread in the market due to COVID-19 cases in India. However, the company has proactively clarified to NSE. FYI…
SIRCA_04032020140853_PRESS.pdf (450.3 KB)
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In my opinion, we cant read too much into it. In the past, I have seen quite a few cases where a stock hardly budged during a broader market crash. But only to fall later. ( Even when the broader market went up)
My post is not about Sirca. But a general one.
Today it hit lower circuit. No buyers.
After 4th March update, the condition in Italy went worse and the whole country is locked. Any idea sirca italy is still functioning?. Else it would be a short term issue for sicra. hope it can comeout of this crisis by 2-3 quarters
We need to ask ourselves, what do we mean by “Lock down”? factories shut and all stay at home ?? It sounds overreaction of the situation. I don’t think the country will be in lock down for 5-6 months. Also Sirca Italy have 4 manufacturing plants, i am sure there will be some strategy. Moreover, Sirca India has 5-6 month equivalent stocks of Sirca Italy. Now the big plus for Sirca India is, they have their own world class manufacturing facility for the coating products and wall paints, so i am sure if the need arise, things won’t take so long to make business decisions to manufacture Italian products in India (after all Sirca India manufacturing is being run under the supervision of Sirca Italy professionals). I am very optimistic, the dust will settle down eventually.
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I live in Germany and the situation is pretty terrible in Italy. It is insensitive to say its overreaction. I agree that it might not be under lock down for long. But as of now situation is pretty grim. Even in Germany we are sent home. Only minimal operations are going on at our work place ( my profession is different, but this is what I gather from my friends here). Today Germany locked the borders with other EU countries. lets just hope that virus infections stop sometime soon.
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It’s almost a global shutdown and most companies across geographies will get affected,some directly and some indirectly.
There are 2 parts here one is supply and the other is demand.
The company has already said that they have 5-6 months inventory.
Sirca Italy has 4 plants,most paint manufacturing facilities are automated and are not crowded
and the few people who work there on the floor do wear protective gear including masks.
As of now we are in a state of flux so temporarily demand will also be down.
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These are unprecedented times when best of companies having huge size and profitability have corrected 20 to 40%.Individual companies can not have their own rescue strategy when the whole world is under it’s grip. A no of smaller companies would be hurt badly.Let the situation be cleared or dust be settled but I think it’s too mild a sentence for this situation.
I may be wrong but I feel too much of optimism in this particular case while the plants of this company are at one of the most affected country.
Just a caution to the fellow members
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Next 3 quarters will be testing time for Sirca as demand will slow down and price cut may come from big players.
Disclosure: Invested and planning to add more below IPO price
Today Sirca Management has updated the exchange that the Indian Operation has been SIRCA_23032020191859_intimation.pdf (378.6 KB) stopped in order to comply with local government directive on COVID-19.
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Good to see the promoters of Sirca have bought the shares from the open market during the market crash. Source of information is NSE.
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Hi Sameernics,
Can you kindly share how to review this information from the NSE website. I have tried, albeit unsuccessfully to find it on my own. 
HI,
Low crude oil beneficial to Paint companies, is not something you will find in NSE site. You will only get such information and analysis from the institutional / brokerage reports online. Just google it and i am sure you will find plenty of information.