Hello Dhvanit
Have you ever came across ?
Manglam Worldwide ? ( [NSE - SM : MWL]
Recently listed
Mcap ~300 cr
PE~17, Listed at PE~38
ROCE ~ 8.2%.Metals and Mining industry average ROCE~14%.
From first glance, What would be your comments based on your SME experience ?
What criterio/parameters would you suggest to study further,if one is interested ?
I do not track Mangalam Worldwide for imvestment.
I track its results every half yearly (they have decent growth and are always further up in providing results).
I probably will not invest later also.
The experience has been good so far (there are ups and downs but it is greater in % terms).
I also got to learn that even if a company is good, they also should have some decent traction/ good investors. They give boost and new bases for share price until results go bad (I hold two shares in which Ashish Kacholia sir invested, and he invested in other one and after that it went to the skies. KMEW, Saakshi amd BEW).
There are several red flags which you habe carry with. Obviously less or null is the norm.
And promoters are everything. If promoters’ intention got bad, leaves or dies unfortunately, then it will be the biggest issues. (Eg: as far as I know Adeshwar Meditex’s promotet died unfortunately. I haven’t got in detail but the stock nosedived)
I think I have written points above which are roughly common points only in reading about any company and information is scarce in SME. (I am new in discussion and have little experience, so might not follow basic things as I keep on learning)
I hope this satisfies your question.
And I am trimming my SMEs little by little. Ever since I got to know about the portal, I started to lower my %. I cannot easily switch into cash in SME and there are several shares which I want to track for atleast March 24.
I glanced over Mangalam Worldwide. What I can figure out is that the company is manufacturing Stainless steel billets and Stainless steel flat bar.
There OPM is measly 4% but their asset turnover is 3+. That means they are adding very little value but their product is moving very fast. I think their main business is to convert iron ore into billets and bars, which are used by their customer as raw material to create high value products. This company feels more like a commodity stock.
Sorry, if I missed it earlier, but which Portal are you referring to…
Valuepickr forum. I mistakenly use portal.
Do you have any advisory service focused on SME or ultra micro caps?
No. Just a student. I am into Auditing field so just know fair amount of rules and regulations which I use in these companies.
100% self. Just a little help regarding how business runs in different industries if happen to know someone working in that field.
Portfolio Update:
| Stock | Cost % | Latest % | Avg Holding Period |
|---|---|---|---|
| Omfurn India | 31.60% | 27.20% | 42 |
| Holmarc | 10.35% | 12.51% | 54 |
| PNGS Gargi FJ | 6.26% | 10.38% | 137 |
| Bondada Eng | 5.66% | 10.32% | 52 |
| Chaman Metalics | 4.73% | 4.49% | 213 |
| Labelkraft Tech | 6.45% | 4.27% | 185 |
| Aurangabad Distill | 4.29% | 3.94% | 51 |
| Knowledge Marine | 0.76% | 3.16% | 467 |
| SKP Bearings | 4.56% | 3.05% | 7 |
| Saakshi Medtech | 3.86% | 3.05% | 41 |
| Kotyark Industries | 2.31% | 3.02% | 299 |
| Evans Electric | 2.46% | 2.92% | 135 |
| Technopack Polymers | 4.28% | 2.70% | 89 |
| Felix Industries | 2.82% | 2.10% | 31 |
| Cosmic CRF | 1.76% | 1.38% | 30 |
| Cadsys | 1.91% | 1.27% | 60 |
| Oriana Power | 1.85% | 1.24% | 51 |
| Silicon Rental | 1.66% | 1.23% | 89 |
| Perfect Infra | 1.28% | 0.95% | 80 |
| Markolines | 1.13% | 0.84% | 95 |
New Entries:
SKP Bearings:
Good Business, Decent Capex coming into play, good results and less decent valuation.
Re-entries:
Cosmic CRF:
Re-entered on expectation of good results and incoming orders. The litigation issue persists though.
Exits:
Magson Retail:
Despite flat results, the share price rose due to HNIs and hence exited.
Uma Converter:
The valuations still are way ahead of the bottom-line results. Classic Pre-IPO window dressing levels are far away and other factors continue the company being sub par.
EP Bio:
Bad Results. The employee expenses have gone over the roof and due to this the bottom-line is flat. Emp exp may be RPTs so exited.
H1 Season:
The results were mixed as a whole, but majority have negative Operating Cash Flows (even prior positive cash flow companies turned red).
Positive results from companies:
Omfurn: Good Growth numbers and around 12-13 months order book still on hand.
Bondada Eng:
H1 Fy 24 vs H1 Fy 23 are great. H2FY23 comparison is decent.
PNGS Gargi:
Consistent Results.
Evans:
Highest ever op margins along with net profits (but with negative cash flows)
Cosmic CRF:
COSMIC CRF LIMITED - sme - #21 by Dhvanit_Merchant17.
Overall SME exposure is now at 95% and no new investment is done in SMEs (except SKP Bearings arising from sale proceeds of others on poor results)
Average Holding Period reduced substantially due to tax harvesting done in September and despite this the holding has increased to 115 days.
Already up 2x since September. Any one else been following this, any other latest updates on their business since September? I haven’t had time to check on this since.
