Another point is the Dolly Khanna has recently entered this stock in last quarter and holds 1%. This lady has midas touch.
She has entered recently into stocks such as Amararaja, Cera sanitaryware, WimPlast in last 1-2 quarters and since then the stocks are moving up…up…
Who is this Dolly Khanna? A web search really only points to some filipino (nri?) lady who is into real estate? Is she the same person?
Bubble guard which seems to the next big thing for WIM Plast, seems to be patented by a US company.
http://federalsupplyservices.com/?page_id=1199
There is no information on the WIM Plast site if it has licensed this technology or has found a way of getting around the manufacturing patent via some process changes.
Is anyone aware of what the status here is ?
Bubble guard which seems to the next big thing for WIM Plast, seems to be patented by a US company.
http://federalsupplyservices.com/?page_id=1199
There is no information on the WIM Plast site if it has licensed this technology or has found a way of getting around the manufacturing patent via some process changes.
Is anyone aware of what the status here is ?
Regarding patent i wanted to rqst one info, if the US company has got patent for bubble guard, is it valid for US only or worldwide.
Hi Ayush
Thanks for reply in investor checklist section. I agree with all the points you have mentioned about Wim Plast and there is fair chance that it continue to generate high returns. But generally I look for companies which have some entry barriers and leadership position in their business and will try to avoid companies which are doing well only because of its management (made an exception by investing in Piramal Enterprises, solely betting on Mr. Ajay Piralmal) Moulded furniture is completely a commodity business with lots of unorganised players. I agree with you that if even in commodity business, the management is able to generate high double digit ROCE, its really a commendable job. But how much can we be sure of its sustainability. When there is no differentiation, it will be difficult to sustain any price war or pass on the hike in raw material price.
Before investing in any company the first question which I ask myself is will I be happy to hold this stock for five years, if market completely ignore this stock or for any other reason. My answer will be no, as I am unable to visualise the sustainability of margins or ROCE in absence of any entry barriers and leadership position. Having said that, its less than a year that I have taken up full time investment and prior to that I was in full time job. So my investment philosophy is still evolving.
Hi Anil,
Thanks for the reply. I think if the ratios are good along with undervaluation and growth (like in wimplast, the stock was trading at 5-6 pe and high div yield), it does work out well over medium term.
Cheers,
Ayush
Hi T Anil Kumar,
I like your strategy very much as this is also in accordance with my process. There are so many short term opportunities, which if can be tracked properly will help us make decent money. As shown successfully by Ayush and his broad based diversified portfolio. However it is a herculean task to actively follow and manage so many companies. Kudos! to Ayush and his team for successfully doing that over a period of time with a CAGR enviable to anyone.
However for salaried employees who are not able to devote so much time and do not have continuous access to markets (buy/sell) I somehow feel a long term oriented strategy based on picking long term winners and holding on (and adding on) to them will yield better results.
Also as Pat Dorsey mentions identifying the source of growth is critical to understand the sustainability of that growth going forward. So suppose company X is achieving superior RoEs based on abnormally high asset turnover, such a ROE boost is clearly not sustainable. I will rather prefer company Y with a brand moat slowly getting transferred into sustainable increase in margins on a broader base.
I also couldn’t see her profile anywhere. But she is among the top public share holders of :- Cera, Hawkins, Amararaja, Wimplast, Selan Exp & Heritage Foods. Looks like an ace investor.
TED even has a dedicated thread for her portfolio. Somebody should interview her instead of all the wise guys on TV 
Q3/Fy-13 Results out…
Total Income up 15.6% to 64.01 Cr from 55.37 Cr.
EBIDTA up 15.7% to 12.01 Cr from 10.38 Cr.
Net Profit up 17.1% to 7.64 Cr from 6.52 Cr.
EBIDTA margin is 18.8% v/s 16.9% (SQ-12) and 18.8% (DQ-11)
NET Profit margin is 11.9% v/s 11.8% (SQ-12) and 11.8% (DQ-11)
Total Raw material costs as a %ge to Income is 66.6% v/s 66.8% (SQ-12) and 66.4% (DQ-11)
Employee costs to Income is 3.1% v/s 3.2% (SQ-12) and 2.6% (DQ-11)
Other expenses to Income is 11.5% v/s 13.1% (SQ-12) and 12.2% (DQ-11)
Tax Rate 24.8% v/s 26.6% (SQ-12) and 29.1% (DQ-11)
9M/Fy-13 v/s 9M/Fy-12:
Total Income up 29.1% to 182.25 Cr from 141.15 Cr (Fy/11-12: 201.47 Cr)
EBIDTA up 27.9% to 32.62 Cr from 25.51 Cr (Fy/11-12: 36.55 Cr)
Net Profit up 32% to 21.04 Cr from 15.94 Cr (Fy/11-12: 22.75 Cr)
Reported 9-month EPS 35.06 v/s 26.55 (Fy/11-12: 37.90)
On 25/01/2013, stock on BSE Closed at Rs. 403/- Up 3.6%
(Results declared after market hours)
Thanks, Deepak. The train chugs along…
I think we must rename Swami. Let us call him Swami Updates. So prompt and so useful. Thank you Swami for all what you do. You really make things better for us.
Just a small contribution. Thanks HG & Tony.
Dear Swami,
Awaiting your updates on Astral Poly. Results to be announced today. Keep up the good work. That’s how we must work as one community. Admire the good work you do.
Thinking of entering at 395. Views invited.
Boarders are requested to post Questions as I am likely to meet Management on 9th Feb, Saturday. Particular interest to me is their growth forecasts for Bubbleguard.
Hi Rajeev,
Thanks for the initiative. Some questions from my side are -
)- What is the breakup of revenue between the plastic furniture/packaging/building material segments? What are the projected growth rates? Sustainability of margins?
)- What are the areas that will provide growth momentum for the company? Previous posts in this thread indicated they were going to get into some new products. Is there any update on that?
)- W.r.t. Bubbleguard, are they the only manufacturers in India? What kind of licensing/exclusivity arrangement (if any) do they have?
regards
HG
Hi Rohit,
This is what i read from the charts as per Point and Figure
The stock is a winning stock and trading way above its 200 DEMA. It has support at 380 where it will create a triple bottom, and next support lies at 350 which is a very strong support. The stock has been trading above its Bullish Support Line ( marked in blue) since January 2012, which shows the strength of the stock.
As per RSI the stock is near the 30 line which is nearly oversold. The stock is trading just below its 5DEMA, 25DEMA and 50 DEMA. There are chances of moving up from here or else if it breaks the support mentioned above then 350 forms a good support. I have bought it around 350-360 levels.
Hi Rajeev,
Is there any update on the management meet?
)- HG
