Bought kalyani cast tech, about 3% of folio, they are manufacturer of shipping containers, SME so risky, sold little of Kpi green, shilchar and ceinsys in that order.
Kalyani cast tech is in process of expansion, recent budget announced a subsidy for containers manufacturing but scheme is still to be launched. They will face capital requirement issue due to large size of expansion. Actual profit might come under pressure due to this while waiting for ramp-up.
Promotor key man risk is there, he is from railway and concor background. Expansion is via a gati shakti logistics terminal, which would additionally accommodate manufacturing of wagons and containers. Low level of disclosure overall, even location already acquired (leased?) is somewhere unknown in Gujarat.
Disc: unqualified to advise, hence please do your own research.
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Dear @vikas_sinha, SJ Logisticsā promoters seem to have a clear sense of direction and appear to be taking measured, calculated risk..one step at a time. The message in the concall was also quite clear and encouraging.
However, very recently I noticed one point in the recent communication and wanted to understand your perspective on it. In the update sent to SEBI on 11 February, the company mentioned that it would discontinue voluntary reporting. Interestingly, the very next day the company announced the Q3 results.
As small retail investors, how should we interpret such development? If voluntary updates are discontinued, it is possible that any major positive or negative developments may become visible to retail investors only through the periodic results. Will this create a major gap?
Another aspect I am trying to understand better is the receivables position, which forms a significant part of their balance sheet for logistics companies. In the concall, management mentioned that receivables are largely linked to the nature of the business and the credit cycle with large clients, but I would be interested to hear how you interpret the current receivable levels and whether they should be seen as normal for this stage of growth.
Since you have invested in several smallcap companies in the past, do you see this pattern reducing voluntary disclosures and relying only on mandatory reporting as fairly common among SME companies?
Looking forward hearing your thoughts on this.
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SJ didnāt announce Q3 results. They just provided a business update. The stock fell hard the day they announced forgoing quarterly reporting. Bear market so it was assumed results must be bad. So Company had to come out with business update to try to soothe investor nerves.
