Vidhi Dyestuffs Manufacturing Ltd has informed BSE that the Company has received listing and trading approval from National Stock Exchange of India Ltd. (“NSE Limited”) & the equity shares shall be admitted to dealings on the NSE Limited w.e.f. March 02, 2016. http://www.bseindia.com/corporates/anndet_new.aspx?newsid=77d696cb-aafc-40c6-9f7a-6eeca76ce440
As I understand Vidhi Dyestuff is just into food color business. It is not into the synthetic colors for FMCG products. I am not sure who supplies these colors.
Usually,boring companies have very few competitors.
In march '15 balance sheet company is having 47 crore as sundry debtors and 83 crore as recievables and 47 crore as payables.
So on turnover of 188 crore of march '15 sundry debtors is 25% of sales.
Is this warning or capital mismanagement.
Can anyone guide me ??
Disc: invested
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CRISIL has upgraded the Debts of VIDHI DYESTUFFS from A3 TO A3+ http://in.reuters.com/article/crisil-ratings-idINL3N16V2MX
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CFO have been less than the net profits consistently. For 4 yrs they have been negative.trade receivables at 47 crs and inventory at 38 crs add up to almost 45% of the total sales.Is this something to be worried about. is the company selling to much on credit and finding it difficult to recover.
Sure. With CFO not greatly encouraging and Net working capital also not being good, this stock need not trade at this premium. The fair PE should be around 12.
how did you guys manage to calculate this for its manufacturing activities alone? As earlier it was also doing a lot of trading, can you please share the basis of your conclusion.
on Natural colors - taken from conference call of Sensient.
http://finance.yahoo.com/news/edited-transcript-sxt-earnings-conference-180714011.html
"We continue to see strong interest in natural colors for food and beverage applications and many of our customers are making public commitments to use natural colors in their products. We have made significant investments in our natural colors business and we are ready to assist our customers in making these conversions.
Our natural colors sales are showing strong growth, with our North American food color business reporting double-digit sales growth in the quarter. We had several wins in North America in both the second and third quarters and the value of our natural color projects has tripled in the last year. Sensient is the market leader for food and beverage colors and we are well positioned to lead the conversions to natural colors over the next few years."
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It is not 83 crore but 38 crore and for further update, VIdhi in its Halfyearly balance sheet disclosure to BSE mentioned that it has reduced the total receivables and inventory by 15 crore(approx) now it wuld be total 70 crore. Which is again a boost in there balance sheet and i think this reduction would be on the account of discontinued trading business which required more capital on work. In my opinion if will further drop and allocation of capital would look different. If there is a huge payable than that is also good for the company.
I am totally new to this type of discussion and will feel encouraged if replied.
Disc: invested and will add more with the time and performance.
I was going through the annual report 2014-15, the promoters pay 90 lacs each year to themselves for giving personal guarantee for a 3.60 Cr. loan! Absolutely unethical! Secondly, they spent zero on CSR in this year out of the 25 lacs they had to spend. Management integrity of promoters is a big question here. They seem to want to take as much as they can to their homes. Disc: Not invested.
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Vidhi results out. http://www.bseindia.com/corporates/anndet_new.aspx?newsid=39f3f112-e981-47b4-bdc3-448c3a5cd9af .
Though the QoQ result is not up to the mark but YoY having good numbers and also declared 20 paisa final dividend for this financial year.
Dis- Invested and added more recently.
i think the reason for today’s downmove was more to do with admission by the management in the notes that they are facing some slowdown because of slow global growth, though they also add that this should be temporary.
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Hi j2eeprofession_
Nobody knows for how long the slowdown will last. But I think, the fact that the management has put it in the press release gives a very good idea about the management integrity. Not many promoters are willing to accept/ acknowledge and disclose tough/challenging market environment.
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Guys we have to appreciate the improvement in the Balance Sheet. Their ROCE has improved. Honestly, I was of the view that being in food industry they will never report decrement in profits but we have to see that if that decrement was because of profit from traded goods section. Apart from that, I am alright with the results. I am planning to add below 50 if it comes.
Kanv
Hi All,
Any recent management interview/commentary/anlayst meet notes on the current market conditions or the q1 results? I can see that the AR is not yet out.
Thanks,
Mukul
The AR is out. Link below:
Surprisingly, there is no mention of the slowdown in the global market (which they mentioned during the results last year) in the AR.
Also, it seems that they are still continuing with the trading business (low margin). It will be really helpful if someone can please confirm.
Thanks,
Mukul
**After reading the Annual Report 2016, found following red flags:**--
• Rs. 2.79 crs taken away by the Promoters by way of Remuneration & commission ( 1.89 crs ) and Bank guarantee commission ( 0.90 crs) against Net Profit of rs. 14.73 crs.( almost 19% of net profit), which is very high considering the size of the company.
• Debt outstanding for a period exceeding six months from the
date they are due for payment increased to 6.57 crs. ( previous year 1.91 crs.)
• Manufacturing expenses includes anti-dumping duty of Rs. 1.91 crs.( cause not known)
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Their remuneration policy will hurt company more in coming times as both Maneks have increased their salary to double form previous year and commission to whopping 5% from 2%. This will damage the bottomline for a longway to come. What can we interpret from here? They are the major shareholder of the company and getting rewarded for their work as per the dividend policy, which is very liberal. I think we should look at this company with some doubts now onwards.
i hope and expect abhijitchoksi to put some light on this topic and participate in healthy discussion.
Discloser: invested from lower level but divested recently due to above mentioned doubts.
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