very good results but few points worth thinking. Again no dividend declared . tgv investing in own company where promotor have majority stake and reason they have given is they want to enter in pharma and for forward integration.
for this they could have easily maintain arms length like they do in rayalseema hypo managed by his son. why to aquire own company and not pay dividend ?
@Kumar_manas . even if it makes 70 cr or 100 cr whats benifit to shareholders ?. in bad times of tgv even when profit was low shareholder stood with them we have seen price of even 11 rs of tgv. that time also company was writing off various book loss like their power plant etc etc. and didnt paid any dividend.
when causitc price is on top and company mad super profit then also promotor didnt paid any dividend wich they had promised in their agm . they are useing profit for buying their own company . they could have easily pay 15% div wich will be around 15 cr. so in commodity company which dont pay dividend and commodity cycle may be on top , to invest or not is decision one has to take on their own.
in gujarati one saying is if i buy gold at price of platinum then i may not make any money , and even if i buy kachara at rate cheaper then kachara i may make money.
Instead of paying dividend they decided to pay 1% of sales as commision to promotors. It’s commodity company, Previously we have seen turnover of 900 cr but profit in region of 10 cr to 30 cr , if caustic price goes down and profit lower then also they will pay ? They have not disclosed that. In commodity we have seen turnover high and profit minuscule in downturn.
Highest top line with very good bottom line though less than previous quarter. Management responds swiftly to any query too. Expecting it to rise swifly, it is already 3x from year lows and should go much higher in coming quarters.
Caustic soda price crashed to 35/37 on Friday in China. Recent dcw concall also they have predicted price to go down 25% from 41 range. So just cautious approach should be taken in any caustic company.
Not only caustic price but management approach for shareholder also not that good. After so many years of profit and also abnormal good profit post Covid they just paid 10% dividend that’s 10 cr rs. Out of that they will get min 6 cr for their shares. Also they will get 1% remuneration , approx 23 cr on 2300 cr turnover. Investor were taken for ride in spite of standing with them even in bad times.
So best approach is to play on value. Better to buy only when it’s available at dirt cheap price .
I fully agree with your views. TGV has never given any dividend. All along they have managed it as a private business. Their track record shows that they have no business to be a listed company. All communications from the company is one-sided. No investor presentation or Con call. After so many years, out of 300 cr NP, they are paying 4 % as dividend, out of which 60% goes to them. At the same time they are taking good remuneration as a percentage of turnover and not on NP. That is why this company is available at such pathetic valuation, less than its turnover.
It is high time learned people in this group should take up the matter from shareholders point of view so that promoters take notice or go for delisting.
We are hearing such promise since years.
1 they put power generation plant in Bellary and t
Later written off
2 some sugar co and bio gas plant they had purchased shares , written off
3) tamilnadu electric board shares they invested for cheaper power now written off
. I don’t say it’s intentional. But I am here to make money so in commodity company I will rather track commodity price and then take action