The company I am going to discuss today has contingent liabilities close to its last FY’s revenues, has been making losses for last so many years, did an international acquisition that went horribly wrong, so this is a company only for very high risk takers and therefore…. others should come back to this blog some other day 🙂 .
If you are still reading this blog post, you are most likely having a very high risk appetite and this is a pre-requisite for a stock like this. As growing up I realized that even garbage has value and this stock is way better than garbage, and we could be catching the company- ripe for a blowout, right at its bottom.
Wanbury Ltd. (http://www.wanbury.com/index.html) came into existence with the merger of two diverse companies, Wander and Pearl Organics. It was one of the country’s fastest growing pharmaceutical companies, and has a strong presence in domestic formulations, API, CRAMS and overseas generics. It is the largest manufacturer of Metformin (around 30% of world production is manufactured by wanbury), Tramadol and Salsalate for the US markets. Wanbury has manufacturing plants at Patalganga, Turbhe, Tarapur and Mazgaon in Maharashtra and at Tanaku in Andhra Pradesh. It has two US FDA‐approved multi‐product API facilities and other plants under operation for five semi‐regulated markets. Its customer base includes Cipla, Ranbaxy and Sun Pharma among domestic companies and Teva, Mylan, etc, among foreign companies.
Background: The Company was doing very well and was creating value by taking over stressed assets and turning them around, until it made a catastrophe mistake of buying a Spanish company Cantabria, which proved a very costly asset bought at a very wrong time. The asset was bought completely in 2007, just before the 2008 crisis and unfortunately, what was expected to be the most prized asset, turned out to be its near-death warrant. Wanbury’s timing went horribly wrong, as after 2008 crisis the Spanish economy could never recover and went into deep financial crisis and depression and on a horribly wrong trajectory of unemployment graph (currently around 27% if I am not wrong). In April 2007, the company had issued FCCB aggregating Euro 15 million in order to fund the Cantabaria acquisition, organic expansion, related diversifications and new R&D activities (800 Nos. 1% Unsecured Foreign Currency Convertible A Bonds (“A Bonds”) and 700 Nos. 1% Unsecured Foreign Currency Convertible B Bonds (“B Bonds”) of face value of 10,000 each maturing on 23 April 2012 and 17 December 2012 respectively). Till cantabaria acquisition Wanbuy was a known turnaround and integration specialist (with their successful turnaround and integration of DOCL and wander). The cantabaria entity cost wanbury really bad. With Spanish economy and business going down day by day, eventually after years of struggle, wanbury finally decided to wind down Cantabria last year. The effect of this acquisition and bad economy even forced Wanbuy into CDR a few years back. By the way most of the contingent liabilities arose as a consequence of Cantabaria and its acquisition, most of which is now taken care of.
Past Horrible, Future very exiting: The last couple of years have been really eventful: with new operations management coming in place and on back of CDR package getting approved, the turnaround specialist started turning around itself. Since the new presidents (API and Formulations) took over, the company has remarkably started resurrecting itself. The loses started shrinking and slowly it became EBITA positive and now positive even at the Net level. The products of the company were never a problem and the company’s product brands are well known. The Company continues to focus on Orthopedics, Gastrointestinal, Gynecology and Surgery therapeutic segments. Its brands like Cpink, Adtrol Plus, Rabiplus, Folinine are among Top 10 brands (some even in top 5) in their respective segments. Another product Myotol-f has been rated as the best brand launch of the year and is ranked as No. 1 in its segment by per ORG-IMS. One of the reasons of this turnaround was also price increases of its various brands last year (without affecting the sales), so the company has pricing power too. The company has two US FDA approved plants and other plants for unregulated markets. The company’s formulations and API business both are looking up and showing good growth in last couple of years. As far as FCCB’s are concerned, Most of them are converted to term loans, 128 “A” bonds were converted to 5,29,085 fully paid equity shares at a conversion price of rs 138. Balance of 48 A bonds are pending negotiation. The company is expected to be net positive this year (FY ending Mar 15- internally company still prefers to track Mar ending FYs rather than Sep ending FY which it is forced to follow this year.) and from next year it should start churning good amount of profits. Company is already generating positive cash flow. Company has shown net profits, inspite of servicing their entire debt’s interest and principal and is also paying taxes. This is significant because company had moratorium for repayments till oct 12, and now since they are generating profits inspite of servicing their entire debt (which is very significant at around 310cr), it means the recovery is for real and sustainable and they have shown EBITA profits un-interrupted for last 5 quarters and this quarter profits even at net level. The recipe for success looks right this time around. The company has great block buster brands, has pricing power, increasing promoter holding, already started generating profits while servicing its entire debt, has two US FDA approved plants, and also started generating positive cash flows.
Valuation: This turnaround gem with sales of 400+ cr is trading at a market cap of just 85cr. The company has close to 17cr in cash and owns land worth 48cr and most importantly own two US FDA approved plants (which are its most prized asset). The promoters have upped their stake from 42% to around 49% (with 8% pledge) by way of warrants issued at 37.5 rs. With other pharma companies being valued at 5-12 times their sales, this turnaround gem has been away from the radar of investors and is therefore, available dirt cheap at just 0.2 times the sales (yes you are right the valuation gap is too big to be true, 0.2 times VS 5-12 times). As the company keeps churning profits this gap will slowly but surely get filled and thus could give massive returns in the years to come. The company with its great brands and assets would either grow to become very big or be taken over by some other aspiring company. Remember Ranbaxy which was taken over on good valuations despite its US FDA issues and massive debt, on the other hand this company for its size has wonderful brands and no US FDA issues (food for thought).
Technicals: The Company has broken out after a consolidation of close to 4.5 yrs and is looking extremely strong with hardly any downside. Even after the stock market carnage of last few days, the stock remains unaffected and is consolidating very well, especially with very low volumes on down days.
Note: Researching this company has taken a lot of time for me personally because it had a great history that went awfully wrong and I had to be sure that this time the recovery is real and more importantly sustainable. I had this company on radar for quite a few quarters now and have interacted with management multiple times to be sure about the prospects. I believe personally the company is on the right path to become an attention grabber and could be the story of next 3 years. One should not dismiss such company by just one bad quarter and should look at the bigger picture always. For example, mar quarter was an aberration where its EBITA was flat (that was mainly because formulations division had an abnormally bad March “month” ) but then it bounced back strongly in the next quarter to not only give a strong EBITA performance but also gave profits at net level. Remember it’s hard to go wrong in a company that has great brands with good pricing power.
Thank you, but i would prefer if you posted midweek. now i have 2 stocks to attack on tuesday. i guess will need to sell some other.
I just recommend one
pp is talking about the recommendation by VP blog. So his second stock for attacking is Patels Airtemp.
i would go for three stocks sure on uc on tuesday
not sure i understood what you are saying
Hi sidhatm
Which three stock UC on tuesday one is wanbury reamining . . .
i have no idea kiran, sorry. wanbury is also not sure on UC, people are just saying, let market tell us that.
Good pick with caution.. Nice I put Wanbury above Bilcare .
God Bless
Ok
What is ur view on prima plastics?
Already replied
Hi ace..
Thanks for recco. I am wondering in case of suzlon you said that conversion of fccb into equity shares is a negative for the company. However Wanbury has also issued equity shares to fccb holders which might br dumped in the market before share price reaches 138..Is this conversion any different from suzlons conversion of bond into equity?? If its not then how come you dont see this as a negative??
Most of them already converted so hardly any incremental equity dilution will happen… I am not worried about them dumping at 138 as by that time we would be sitting on three fold gain. Conversion price matters a lot… Hope I could clear your doubt
What is the significance of Rs.138 here . 138 is the conversion rate . since the price is quoting below that rate ,remaining warrants will not converted and company liable to pay back the amount
i am talking about the shares that “were converted”. Please read the annual report. The ones that were not converted were converted to debt.
Around what price one should enter ? tks in adv.
Whatever one feels comfortable with
Hi ace,
Another point to be noted is wanbury has decided to wind up cantabaria while senvion has become a profit making subsidary of suzlon. Considering both companies have run into trouble due to accuisitions , just trying understand your logic about stock picking ( please note Though I am
Following u recently.. I do have immense faith in your logic) …
oh no, i am not bothered with alternate perspective. I always cherish that. By the way, the equity dilution hardly happened for Wanbury because most of bonds were converted to debt as the coversion price was way higher. Very few opted for conversion. On the other hand suzlon’s coversion price was not a problem, so most of them got converted to equity. So to compare equity dilution of suzlon with wanbury is like comparing apple to cheese.
Hello ace… regarding API i was once researching ANUH PHARMA … appreciate your views on it
anuh is slow and steady ship. good.
Ace you said you have interacted with the management a couple of times.. However I 1st saw this stock In the last qtr when it’s EBITDA margin expanded from 8% to 13% I’ve been trying to get in touch with them since then.. The CFO or anyone frm the management refuses to meet.. Can you share your contact pls..
they are refusing to interact ? why? arent you a shareholder ? I did not find any problem. We should raise this in the AGM. Every company is bound to entertain shareholders.
Dear Ace Investor,
I am just reproducing an article from a newspaper related to wanbury here for understanding the risk factor. Awaiting ur comments…
Hutton Group Files Winding-up Petitions against 2 Cos
British Virgin Islands-based finance company Hutton Group has filed winding-up petitions against drug maker Wanbury and export house Faze Three for non-payment of bond dues,according to people familiar with the matter.Wanbury and Faze Three had raised 2.7 million and $2.14 million,respectively,from HGL through the issue of foreign currency convertible bonds (FCCBs).However,both companies failed to redeem the bonds,forcing Hutton to file the petitions in the Bombay High Court.According to the petitions,which were reviewed by ET,Wanburys bond matured on April 2012 while Faze Threes expired in October 2011.Both companies did not respond to ETs emailed query on the development.On Friday,Wanbury reached a settlement with bondholders while Faze Three,which exports textile to multinational retailers Wal-Mart,Sears and JC Penny,referred to BIFR.Wanbury has agreed to pay the face value of the bond along with 10% premium and 6% interest.The company will pay the dues in installments within four years.The offshore lender is being represented by Nishit Dhruva of MDP & Partners.Wanbury is the second pharmaceutical firm after Wockhardt to default on its FCCB dues.Earlier this year,Chennai-based Orchid Chemicals had to sell its key business to Hospira to pay off foreign dues worth $167 million.
You do know that you are quoting 2012 news and you should know what happened after that. Already replied about the news on this blog.
A good value find ACE. I am sure this would go the Marksans Pharma way (another turnaround case) . Appreciate all your hard work.
Fortunately Marksan was recognized by the investor fraternity with the help of VP at a very early stage, around seven I believe and already become a 10 multibagger.Hopefully Wanbury should go a long way. Let us cross our fingers that the management will deliver.
i am just presenting my views here. Let’s hope that management keeps on doing what they are doing. God bless.
And i just hope it goes the right way 🙂 ….. god bless.
thanks for a good research report .. but i want to point that the market cap may be 85 crore because of the huge loan they have in their books so we cannot say that the real market cap is 85 crore.
market cap is not connected with loan or anything. market cap = no. of shares * price of each share.
ya i know what market cap is all about i am saying abt the real market cap!!!
ankitkhaitan, what’s real market cap? what you are referring to is enterprise value.. is that what you mean?
Ankit bhai. What is the difference between market cap and Real market cap. You seem to be a financial guru. Please teach us these new terms.
This is one worst pick from your side
🙂 ok sir. I respect your perspective.
The debt equity ratio is very high for this stock. I won’t go near this stock.
one’s own conviction is most important.
what about hutton group winding up petition of 2.1 million USD in court on defaulting by this company????????????????
you know that happened in 2012 when wanbury defaulted and do you know what is the current status ?? I would request you to also read AR of company.
Hi Ace,
I want your view on why company’s results are fluctuating? In DEC they showed net profit, then in March in loss and then again in June Profit. You did mentioned that formulation has bad quarter in march, is it generally apply to all pharma company?
see, earnings would be lumpy because company is coming out of deep crisis. important thing to note is that the trend is very positive. for forumations last quarter is generally the worst among other three, but march month was abnormally bad for wanbury.
Nice! Sure to pick on tuesday.
Ace sir, please need these stocks also ur attention DATAMATICS,THEMIS MEDI..share ur views plz..
datamatics dont like, themis is still under observation.
Hi ace, What’s ur view on Shakti pump, hov services?
not sure about hov, but like shakti
Hi Ace………What are your views on polo hotels?
average at the moment
Hi Ace………does pending winding up petition filed by Hutton Group bothers you?
How do you think they will make a payment of $2.1M with interest by next year??
when the company had defaulted their FCCBs, then its normal for bondholders to file winding down petition. But one should know that the settlement was reached and now just 48 bonds are pending settlement and they are shown as current liabilities, which would be paid in four years starting oct 12. It was done in 2012 and then the negotiation was inked. You are referring to an old 2012 news without giving the updates that happened thereafter.
Sir……your great…. you are like an Amir khan in 3idiots……all iz well…….
I am very much convinced about this product ….surelly it will be 100 bagger in a span of 5 years…….. excellent stock pick………….if the results of 2nd quarter is good it will be a 10 bagger within 10 months……all iz well sir……you want to make small investors rich……i am 1crore % convinced…..it is a very big multi bager in the future….
Sir please give your views on Panchsheel Organics
already replied on the blog i guess
Sir please tell your advice on drdatson laboratories limited
do not like it at the moment
Ace ur views on HOV services and patel airtemp and Shakti pump….
hov do not like, patel and shakti are fine
Hi Ace,
This is a little offbeat but can you please tell me how to check royalty pay by an Indian subsidiary to it’s parent company in balance sheet? Is it covered under other expense?
nops, its covered mostly as royalty payments in the financial statements.
Thanks ace for your reply.
However, I checked bse website for HUL and Maruti both. I could not find any royalty related term in expenditure.
All I could find it these terms.
Other Expenses,Employee Benefit Expenses,Changes in inventories of finished goods, wip and Stock-in-trade,Depreciation and Amortisation expense,Purchases of Stock in Trade,Cost of Materials Consumed
Can you please convey what am I missing here?
it should be listed either as royalty of franchise fees .. if its something that shoudl be there as a very clear thing.
sir – can you share your views on Sutlej textile and neyveli lignite at cmp
dont like both the stocks
Hi Ace,
top line is almost flat since past few years.How do u think it going up in next few years?
topline flat is for a reason right? did you read the annual reports? it will help you understand the company better. the topline has been flat because they have been concentrating on turning around their spanish subsidiary. The company has great brands, so now that they have started concentrating on growth topline growth has to follow. Remember the got new top management a few quarters back and the results are for all to see
HI Ace,
Continuing this thread, I dont see any good reason for not selling these established brands ( With pricing power also). Any good management will never sacrifice their daily bread & butter for tomorrow”s profit.
oh yes,it would amit. if your subsidiary is bleeding like that and that subsidiary is also putting a question mark on your survival its bound to take a lot of your efforts. but if either of your or your subsidary are way stronger and the stronger one is your real bread winner then its relatively easier. case in point tata steel and tata motors.
Sir, why are you cheating innocent small time investors for your personal gains? You know well that this is a worthless stock. Just because you bought this stock, you want everyone to buy this stock.
Thanks salim for your kind words. My god bless you.
Ace sir, I am not sure whether there are more than one or two Salim or somebody is trying to misuse my name. I did not post the above message. Looks like there are many Salims 🙂
never mind… EID MUBARAK DOST…God Bless
To get rid of all this confusion ..why not use your wordpress or gmail account
Just a small query , isn’t this almost as risky as Bilcare ? Both still have high debt and could take a long time to perform
bilcare has yet to start recovering anything. Wanbury has already started showing profits and is currently servicing the entire debt also. recovery has already started. good news is fccbs didnt dilute good too much equity. Bilcare has a long long way to go before it comes in the state of wanbury.
Can you please explain your words ” most of bonds were converted to debt ” – i thought bonds itself are debt which the company has raised to fuel its capex needs , and will have to eventually pay back the bond holders with interest.. Hence I did not understand meaning of bonds were concerted to debt…
Please excuse my ignorance…
you are right and that debt + interest that they had to pay is now converted to debt as part of cdr settlement and that should be repaid by 2019. Some were converted to equity shares at 138rs (but thats a small amount)
also i would urge you to go through the AR so that you get better understanding.
Hi ace some comments found on moneycontrol message…….kindly clarify to this messager…..I have no Agenda but I am one lost huge amount by acting based on such wrong informations provided in websites and blogs .So I will look through all directions and fight against spreading misleading informations . The blogger explained in his comment that the reson for flat topline is because of its concentration to turn around its Spanish subsidiary . But in reality company informed in BSE on 7th November 2013 that they filed voluntary insolvancy petion to wind up the said subsidiary.The news is still there in BSE and you can verify it.What treatment I should give to those who sharing these type false information to genetal public to mislead us.
yes, i indeed said that they were trying to turn around the company and that is the fact, but eventually when the new management took over they decided that turning around that company was not possible and therefore, they decided to get rid off the company. First they tried selling which was not happening and then eventually voluntary insolvency. By the way i have mentioned about company winding down in the research note in the “Background” section. Clearly someone is just trying to mislead people 🙂
Thrte is fedtival to Muslim community called Eid and it wad yesterday. We couldn’t see any wish from you Ace. Any particular reason.
Oh yes, Its today as my per TimeZone 🙂
please guys no hindu muslim here we all are indian …
Thanks ankit for writing this. i really wanted to say this ankit, but as a blog owner i thought it might offend the person who posted. It saddens me that to see this kind of attitude among readers. why cannot we move over all this man…i was really hurt to see it. Readers should know i have missed posting on a lot of festivals, infact i have missed most of hindu festivals..anways, lets move over all this in the betterment of our country and society. People send hate mails, call me operator, call me tons of things but i dont mind it, but lets not pollute our indian-ism. God Bless.
This is heights of stupidity. This blog exists so that everybody can make money. This blog does not exist for sending greetings and wishes. How often have you seen Ace sir sending wishes for festivals? Just because Ace sir send wishes for one festival it does not men he has to send for each and every festival. Some idiots use every space for spreading hatred. Ace sir, one kind request, please block these kind of messages which spread hatred and block these users.
This is really unfortunate,
why some one wanted to say there were no wishes for festival .
If we look at the calender there will be festival for some community for every day .
Just imagine if everyone start asking why there are no wishes for their festival .
Lets keep it clean and related to stocks only .
Thanks & Regards,
Prashant
Mr. B, one small question. Why are you waiting for Ace to post his wishes for Eid? If your intentions are good, you should have wished Ace and every blog reader with “Eid Mubarak”. This shows that your intentions are not good. Your intention is just to spread hatred. If you want to spread hatred, please do that in some other place and not this blog.
This is heights of stupidity. This blog is for people to make money and not for sending greetings and wishes. Just because Ace sent wishes for one festival, it does not mean he has to send wishes for every festival. Tell me how many times in this year Ace has sent festival wishes? I am sure you won’t answer that.
Ace, one humble request. Please don’t entertain these kind of hatemongers. They simply want to use this space for spreading hate messages. Please block these messages and these users. It really hurts to see these kind of messages.
yes salim. I agree and no more festival or political postings, but dost (taking a cue from your name) EID MUBARAK….god bless you and your family…
Hi Ace,
Whats your view on NCC rights issue, issue price @ 20 and CMP @38.
This will be my first rights issue application, so wanted to check if there is something i need to check before i go ahead.
Will appreciate your view.!!!
dont like it venkatesh
Hi take a look at sterling bio , almost same type of hostory
replied about it earlier too, its under research but so far nothing interesting
Mate do you recommend entering waterbase at cmp? im hearing good stuff about it.
as you guys know i like the story a lot
Sorry Ace……….Not interested in This One………..Management is serious abt debt level…….NOT CONVINCED ……Really Bad one
Just saw the fundamentals, they really terrible… lost some respect for ace. Good possibility hes an operator.
i respect your views pp. God bless
no problem hitesh, one’s own conviction is most important.
Hi Ace,
Your view on any of the following stocks:
Natural Capsule
National Fittings Ltd
Glance Finance
Sri KPR Industries
only natural capsules from the list is good
is glance finance operator driven? its non stop on uc. Hes seeing all these companies from screener. ## Is morepen labs anygood? i had bought it at 5rs, then went non stop uc for a month, now non stop lc. i want to free capital but i cant :(. Also i take back my previous comments earlier after some further research. Numbers still shit though. None the less – #Respect
morepen is very big market cap and i prefer smaller market cap, plus i am not convinced about morepen’s business as of now. As you know i like turnaround stories a lot so normally their numbers are shit, but what matters is that if that shit can be converted to biogas or manure, you’ll make tons of money. Everything is opportunity if understood well.
hello ace
i dont understand mentality of some people…why they hate u…u r helping us and giving good stocks if somebody dont like then he should avoid instead of critisizing u….this type of people r 2% of 100%…v all love u..god bless u…dont entertain this type of people who dont respect u….
i dont know ravi, but i think i have started to take it in stride. first time every new accusation hurts, like today’s religious bias, but probably next time when someone would say this again, it may not hurt that much. Anways, god bless all the souls.
Dear ACE, pls ignore such type of ppl….U know..
A wise man said – “Never wrestle with a pig, you’ll both get dirty and the pig will enjoy it.” 😉
🙂 …vested interests are always there man…lets get back to making money…
Who will respect people like Arun Stock Guru, Valuepick,Aceinvestor ..etc..etc
God bless you my friend and give you peace.
there are a few more to.
Could be, but its unfair to target them. Some are genuinely helpful and if someone do not know who’s right and who’s wrong, he should not follow the blog. simple. Anyways, who said life is fair 🙂
Hi Ravi,
Me too do not understand . Peoples are ready to pay to so many brokers for tips and many fund managers for recommendations . Here they get stocks that can multiply their wealth along with so many queries answered for free .
Looks like lot of peoples out there who do not like some one who helps small fishes like us to earn knowledge and wealth . Or may be these are the peoples who requested for disclosure of stock name before posting on blog but AceJi did not entertained them .
Anyhow whenever I see gentle reply of AcejI to such elements, I start him respecting more .
Thanks & Regards,
Prashant
oh yes prashant, it is possible, because some brokerage houses (or that’s what they claim to be), send emails for collaboration and when i deny they ask me to reconsider than be sorry later…maybe its that too…well anyways, no worries till others are taking it as an opportunity …
Appreciate Ace/Others….This blog is to make investors rich…..lets not get into religious matters…Ace is doing an excellent work in creating wealth for all readers…..Ace suggest and best is to not post religious messages/greetings on this blog. You may need to post a clear message to all.
hmm….
dear mmb cleaner
if u dont like him then dont come here nobody is forcing u to do so…..
Jab log tumhare khilaaf bolne
lage … samajh lo tarakki kar rahe ho…..
ha ha ha ….that’s inspiring. God bless you my friend.
Again some wise man said …” You will never reach your destination if you stop and throw stones at every dog that barks. Better we keep biscuits and go.” 😉
Hi Ace,
Can you please let me know what is the ideal portfolio size.I know its not possible to give exactly, but if you can give a range It wud be really helpful.
Thanks in advance,
Rammohan.
Not sure if i understood your question but let me answer it…It would wary from person to person and with his living style. So basically, if you have an portfolio with yield of 2% and your living expenses are say, 10lacs/annum, you need to have a yield of 10lacs as yield then the portfolio size should be around 5cr so that you can live your life comfortably. If the yield of portfolio is 1% then size of portfolio should be around 10cr and if yield is 3%, then portfolio size should be around 3.34cr. did it help ?
Ace Bhai ..Yeh kahan crore ki baatein kar rahe ho …..agar hum crorepati hote to kya blogs follow karte ….hum bhi blogs likhte 🙂
Sir, what is your view on Nile? Is it good for long term investment?
nile looks interesting for sure….
Kindly give your view regarding Texmaco Rails , Stylam Industries….
texmaco is interesting…but stylam is not good
Thank you for your efforts in bringing this to our attention. However, I have a query. You say the company is servicing the debt, but from the “Secured Loans” heading under Moneycontrol financials tab, it shows that secured loans have jumped to 374 cr from 342 cr, it is almost at 2009 levels again. What could be the reason for this? I agree that company is servicing debt, but it is surely not decreasing it?
tushaar, i dont user moneycontrol so dont know what it is saying. Lets concentrate on long term borrowings only because secured loans would also include working capital loans which is meaningless to consider. long term loans is 310cr. Please use annual reports, because that gives the best picture. I guess you have included working capital loans which is around 64cr
Thanks a lot. What are your views on Carborundum Universal, Alphageo India and TV Today Network? I realize first and third are larger caps than you normally track, but if you have any idea, do let us know.
all three are good.
Tushaar, TV Today is not a large cap. It’s market cap is just 1200 crores 🙂 This is a small cap company. TV Today is a very good company but that is my opinion.
ravi i also agree with your take on tv today. i like it too…
Haha, I said “larger” not “large”. The devil is always in the details. But I thank you for your reply. I still have a question though, do companies like Carborundum and TV Today take longer to give multiple returns than companies like Wanbury. I guess they will, since larger capitalization means safer investment. Safer usually means less rapid but more sure growth. Am I right in this?
tushaar, i have a very different take on this, large cap does not mean safety, thats a myth. market punishes bad performance equally.
Remember suzlon, HFCL, unitech ….what they were and what they are now? some are down 99%, then what makes people think that
its safe. On the other hand, multiplying the market cap is directly propotional to growth. Now a company with 50k cr market cap,
if it keeps on growing at good pace the market cap will multiply, case in point ITC, but if growth isnt there then no matter,
what ratios the company has (RoCE/RoE/RoA whatever you follow), the market cap remains stagnant, e.g. HUL. Ditto with small caps,but its easier for small caps to grow at 30-50% CAGR and therefore, market cap multiples more and therefore, without equity
dilution, the stock price will multiply more. As far as safety in small caps is concerned, if the small cap is growing, safety
is there and if the stock also has a yield, then its super safe. i hope i could cut across my point here.
I agree with both of you, Ravi and Ace. However, what I have noticed is that small investors are very quick to dump small caps when overall sentiment is even slightly negative. On bad days for the market near 20th September onward, my small caps all fell 5-10% each, whereas large caps still got away with 0.50-1% downside. Of course, similarly my stocks rose again next day almost 5-7%. I just meant to say since larger caps have some measure of established confidence, investors dump them with much more caution.
On another note, do you guys use any board or forums to discuss ideas/thoughts etc? This seems a very inefficient way of holding a conversation!
Again, many thanks for taking the time out to answer my questions….not many such people around.
daily voltility is obviously there in prices, but if you look at multi-year pattern, then its fine. They are expected to be volatile, but law of averages catches up.
Tushaar, always remember this
There were many large caps which have become small caps now and
there were many small caps which have become large caps now
Now you tell me, whether small caps are risky and large caps are safe. I don’t think so. Both risky and safe stocks exist in small caps, mid caps and large caps.
sir whats ur view for manjushree and hexaware ?
majushree i like a lot hexaware is overdone
Hi Ace,
This is a little off beat but what is your opinion on other asset classes like bonds, commodities, real estate? Do they find a place in your portfolio? what about options and futures and other slightly complicated derivatives. Should retail investors who usually pick stocks try to understand them better?
hello chirag…i am only real estate better, other asset clases have a lot of issues with them
Hi ACE, i want to know your view on Majestic auto..for medium term perspective
not convinced at the moment
Ace
What do you think on Aries agro
not sure at the moment about it
Hi Ace, How is Gujarat Borosil for long term and if Aimco had to be purchased at what level it should be brought as it has picked up from 18 to 79 as of date. WIll both be multibaggers.
gujarat borosil has to prove itself, i am not very sure about it at the moment.aimco lets wait for the results
Hi Ace,
You have mentioned that you are researching about IFB agro. Do you have any view now?
Also, please help to understand how to get the necessary info (that is not present in the Annual Report). I tried to get the answers through the email. But I am waiting for about 10 days and no reply yet (in spite of mentioning my DP details).
1. Am I expecting the reply too quickly?
2. Should I call them to get more details?
3. Is there any regulatory procedure to escalate this behavior to the SEBI?
Thanks in advance.
Regards,
Sudhakar
yes contact them again..
Hi Ace,
Promoter sold 32272 shares of aro granite on 26.09.14. i think its bit negative for the stock
Dilip Kumar Lakhi is NOT A PROMOTER….his selling does not mean promoters are selling sir.
Hi Ace..what are your views on kopran at cmp?
already mentioned
See Ace, despite of lot of criticism by some punters…Wanbury opened in UC…and looking at the pending orders and traded volume, dont think it will come out of UC..we’re still waiting to buy it…what to do now? Anyway I’ll go for it whenever it comes out of UC.
it will because buy orders are not much, it should come outof it soon…even i am waiting 🙂
Its difficult to believe Ace that you didnt make a position before recommending this stock!!!!
You are really a godsend if you are waiting to make a position….
i have a position..i would be an idiot to not have position but not the kind of that i want 😦 …. so have to buy some more for my family…
sam, when i beleive in a story i dont look at price but value, as people know i have bought waterbase at even 4 times my recommended price, i bought liberty at twice my recommended price, so for a good stock its never a bad time to buy IMHO
HI,Ace,please give your view on Morepen lab.
already replied. at this point i like wanbury way more than morepen
As you mentioned that you like Waterbase a lot, but can someone take position in it at around 71 RS, if not entered earlier, keeping long term views…?
i indirectly replied to your question when i replied sam.
Ohh yes, got it. Thanks.
Any views on Ganesha Ecoshpere and Mazda ?
Also, I’m holding HSIL from 126 levels but very few qtty..Should I continue to hold? any views?
yes you can. do not like ecosphere though
Hi ACE,
Couldn’t buy Wanbury today. Hope it doesnt go with circuits to 70 levels like Aimco!
Also ACE, please advise whetehr I could invest in Auriopro solutions at 275-280 levels?
Regards.
no it should not go like aimco…market sentiments are bad so people will get scared and that is when smart investors will make entry….this is our chance..auriopro do not like it.
Thanks ACE .
Hi Ace,
Could you let me know your opinion on Dynamic Industries?
Thanks in advance.
already replied in one of the posts
sir i have just started following your blogs.sir your understanding of balance sheet and business is very good .sir following are the list of my portfolio .u pl share your view
1 caplin point . 2 banaras beads. 3 bibcl 4 astec life. 5 trigyn tech. 6 stylam 7 keelton tech. 8 mindteck 9 unique organic. 10 bliss gvs pharma
thanking you
uday
caplin point good..banaras beads get out if you can. asetc is fine, trigyn under research so no views at the moment, unique organics do not like at the moment…stylam is bad…keelton already replied, mindtech not interested…rather than bliss i like cupid more at the moment
sir
i just started reading your blog so i dont know where u have written about keelton .so pl share your view about keelton
its a very average stock
Ace, is your view still the same on V2Retail? It was up today in a weak market? Still a hold?
i like the stock
Dear Ace.. your views on Rubfila international…Rubber prices are at record lows and may remain so.
it will help rubfila ofcourse.
Ace, How do i get the shares you recommend. its like a lottery. You could a try a social experiment, find a company which cmp is 250+ and lets see if it goes on uc.
i did not understand what you said
Is it worth investing in Rubfila at cmp sir
i do not track is very closely. I would rather play the cupid story
Thanks a lot for fast reply sir
no problem
oil, coal and gas fallen………any alternative energy like Solar and Wind…any stocks for long term….!!!
And also E-Commerce…I think next boom….any stocks for long term….!!!
if there is anything i’ll definitely post here
E-commerce? isn’t V2 a future e-commerce play?
well, yes, v2 will have ecom too but i think he’s expecting a pure-play ecom company. that was my understanding ..if not then what you say is right….
after re-reading his question, i think ur right Ace. he’s asking about pure ecommerce play. doubt any such company already listed. likes of flipkart,snapdeak,jabong,etc
Ace, whats ur views on such sectoral booms? I am kind of scared of the busts that follow the booms – cement boom(1992), dot com boom(2000) and the subsequent busts, in 2008 there was boom in offshore companies, llikes of aban hitting 5000, alphageo hitting 1000 which later crashed to 250,21 levels respectively. I am invested in V2 and seems the next boom could be the retail space including ecommerce. How to safeguard oneself from the busts that could potentially follow in this space as welll?
valuation follows growth. right now in v2, valuation itself is cheap so its no where near bust…if the valuations become very high and is not followed by growth, one needs to re-check strategy
ok..
Sir
Last time you put a report on Aimco after VP given many clues about his next pick as Aimco . Are you also a follower of VP’s blog and inspiring from that ?
i do not follow any other blog or forum. I am inspired from my father an nonone else.
Are your father was a blogger.?
🙂 no …
Aceji,my trader bought cupid trades instead-of cupid rubbers. can i hold this? please give your valuable suggestion.
if you are expecting a ferrari and somebody gives you a nano, would you keep nano ?
I can’t stop laughing . Ace, sometimes you are right on the spot and very sarcastic too 🙂
lol..
🙂 🙂
sorry, today only it was happened.
already replied
Sir thanks for wonderful pick.. Sir can u pls share our views on following companies:
Force motors
Polyplex corporation
Sudarshan chemical
Deepak nitrite
Thanks
all are good IMHO, although deepak at this level i sa little dicey
Ace do you know why v2 retail fell from 1000 levels to 7??
everybody knows that. did you read the stock story of v2?
Hey Ace,
Can you please share your views on Helios & Matheson IT Ltd from both fundamental and technical perspective ? Wanted your opinion before i take a position.
Thanks
i am not too keen on it at the moment
Hi Ace,
Which are the stocks you are actively researching currently?
Thanks
a lot of stocks
For example? 🙂
would not like to comment. but few stocks i have rejected after researching i have already told
Hey ACE ji, look at the pending order for Wanbuty.. its over a lac and traded only 13k…and its 9:33 in the morning….seems like its not goin to come out of UC anytime soon….this is another Aimco…will be in UC for a week for sure…..dont know how to buy this…??? m eagerly waiting…
the circuit will open…see, lot of executed orders….
Sir please share your views about meghmani organics ltd., IDBI Bank & Pennar Industries for fresh entry. I can hold for very long.
meghmani is ok but idbi and pennar do not like
and what about kec international…
wts ur view on Avt natural…when your next pick is coming
already replied on avt on this blog please
reply again, even i am holding avt and would like to know your view.
Unless you put a search feature, its going to very very difficult to find
you can use google…i had replied that earlier… do this please, in google search window type like this: avt site:https://aceinvestortrader.wordpress.com/
the above line searches a specific website…anyways its a nice defensive pick…
Hi Ace..
Do you track Gujarat Automotive Gears Ltd.?
Its plant located in Vadodara, Gujarat and supplies Auto & Tractor Components and majority of its revenue comes from European Markets.
ROCE > 35%; Zero Debt;Dividend paying company;Trailing PE is 11.95
Thnks
yes sir i know the company very well. sweet company for not so active portfolio. thankfully they split for liquidity although i would have preferred a big bonus given their reserves, but overall its nice.
thnks for your prompt reply
Hello, agrochemical business in india is cyclical. Most of revenue comes in q4 and q1, am I right?
And for export Oriented companies, fluctuations reduce to a good extant. So qoq is also as reliable as yoy for such companies?
i would still go via YoY, it takes into account everything.
Thanks
What is your view on SMS Pharmaceuticals and Polyplex?
sms is average, not something i am fan of. polyplex replied numerous times
Is Mold-Tek Packaging good for long term?
it is decent, but i still like manjushree more
Please advice on stocks which are there in my portfolio..
1. Sanghi industries
2. Aimco pesticides
3. Munjal auto
4. Freshtrop fruits
5. Cupid rubbers
6. Ashok Leyland
7. Ifgl refractories
Please advice on above stocks for long term… Some of them are falling down… Please I need a valuable opinion
ashok leyland i do not like…munjal is average..sanghi i do nto tract….ifgl is ok….rest are my recommended stocks and i am very comfortable with them
Ace, is Lanco Industries good stock?
NO
WHAT ABOUT LANCO INFRA
sir, pls share your view on Amtek auto
do not track closely
Sir, can you please share your view on Sam Krg Pistons and Rings?
Not sure whether my previous query got posted. What is your view on “Sam KRG Pistons and Rings”?
looks interesting
What is your view on “Sequent Scientific” sir?
its fine for a long term passive investor
Not only stocks but even sentenses used for replying is copied from VP blog. !!!
???
passive investor is a investing term and its not copyrighted ??? you should know that. its fine to hate me but not fine to be so ignorant in life.
Dear Ace..Please choose to ignore people who always have habit to criticise..all i can see here is..even though he is criticising but he is still here..i am sure looking for more of your research LOL 🙂 God Bless you Ace…You are doing really a wonderful job 🙂 cheers
thx brother. God Bless.
Chandu, ok let’s assume Ace copies from some other blog (just assumption), what problem you have got with that? People come here to make money not to check whether one person copies from other and just for argument sake he copies also, I don’t think it affects you anyway.
and just to re-iterate, if i feel comfortable and have personally researched the stock, i will share it with my readers and i do not care if its been researched or not by anyone else. Last but not the least, again, i dont go to forums and blogs. God bless.
currently almost debt free Aimco, in recent agm, has passed resolution to borrow upto 1000cr!! Any new plans ahead that they put such a giant no for resolution?
What are your views on Jay Bharat Maruti?
its average
sir your views on KEC International
its fine…
Finally we are able to buy it today around 50…m sure Wanbury will turnaround this fiscal for sure…
i beleive its a good story for next few yrs…
Sir – have a query. Since the prospects of Wanbury is exiting wonder who is selling? It seems to have come off the circuit sooner than we thought.
nops, its come out exactly at right time, the highs are always the time when some technicals play out, so you get resistance there, but not too worried about it
To day i entered Wanbury @50.55 for long term
ok
Kellton Tech Solutions – Another RS Software?
sir kellton has prestigious client like PVR, NDTV, Makemytrip and many more.
Promoter increased there stake in june 2014 by 4%
They are aggressively expending there business.
in last 2-3 days market was in correction mode still it was in UC.
In directors report I had seen they not paid dividend as they use those for expansion plan it means they need lot of funds from us :))
They had been awarded : “Top 20 Travel &
Hospitality Solution Providers 2014”
LINK : travel-hospitality.cioreview.com/vendors/2014/20special1
I am sure it will be another RS Software in coming days.
Sir, please research More about this co. and recommend if we invest in this co.
already replied about this company..
In future everyone will run after Kellton like RS Software I bet u 😉
I am a tech guy and know about its valuation what business they are serving and it will also give competition to 8k miles.
i hope so…i have not reasearched it in depth but overall, i didnt find anything…i will reasearch it, but 8k i liked it coz the products..i like only products business…by the way i am a tech researcher myself 🙂 ….good to see people like you also into financial planning
AceInvestor Ji,
Your view on Majestic Auto
not strictly tracking it.
Ace ji your view on kellton tech and zicom security please
ziacom has potential…
Dear Ace,
What is your opinion on ” SKM Egg Products Export (India) Ltd. ” ?
WHAT ABOUT LANCO INFRA
dont like the group
Hi Ace, any views on Shreyas shipping?
dont get into shipping just yet….
Hi Ace, any thing on SKM Egg Products Export? This industry has still been left untouched.
Hi ACe, why the likes of Omax auto, Rathi bars and Makers lab haven’t seen the kind of rally they deserve based on their financials, high margin of safety, honest promoters, and good track record… !! can you please cover these stocks and suggest something…. ?
still under research as i have mentioned in past..
Particularly, Makers have the same promoters as IPCA labs, was a dividend paying company 2 years back, and top of it already hold 0.08% of IPCA, worth 8 crores, this means out of the total market cap of 18 crores, you are paying only 10 crores for company’s own business of generic APIs.!!
i know…..
Hi Ace, How are the prospects of Amtek Auto, is it advisable to buy at around 190?
its a decent defensive bet
sir
good evening
I am new to your blog
Can you please guide how to follow you.
my no. is 9675695584
kindly guide.
thanks
Harry
you can click on the “Follow” link on the blog. Also, would advise you to not put your phone number in public domain, may attract spammers … god bless.
thanks sir for your kind advice.
sir, how to know your new recommendation.
can you please guide which stock should be bought now in rs. one lac total
you can choose any of the stocks mentioned here in this blog…take your pick 🙂
Ace ji , you said 8k miles not at this price but It keeps going higher and higher , I feel like missing out,Isn’t it still a good buy ?
if you are convinced then you should not be asking me right ?
i am never convinced about the entry price haha. It always seemed expensive but it just keeps rising and the result was extremely good . Can it become another thing from Silicon Valley ? I don’t want to miss it out if it becomes something massive in the the future .Huge companies get created in Silicon valley ,that’s all i know. I lack experience in markets , that’s why i asked you .
it may go up who knows..but at these valuations, I cannot enter…
Dear ace,
I got it @49. Following is my portfolio, your recommandation please.
Cupid rubber, Aimco, Delta corp, Dr. Datson, GSFC, Hcl info, Praj industries, shipping corp, sterling bio, v2 retail.
Many Thanks,
Sriram
not very sure why are you into praj, and shipping corp, hcl info and sterling and dr. datson. not very sure if these names are going to compound well for you.
Thanks. I’m new to investment in stocks. Proj, Shipping corp, and hcl info are icici recommendations…
dont just recommendations blindly, understand what may cause earnings growth and if that would be translated to share price growth.
Understood….
Sir I am impressed with your valuable research as far as Wanbury is concerned. But unfortunately I do not have sufficient investible funds to buy wanbury. Can I go for Morepen Lab as this is also from pharma sector and I hope its doing resonably good. Also I can buy more shares of Morepen with my investible funds. I appreciate your valuble feedback to act accordingly
number of shares do not matter….what matters is the amount of capital that you invest. If you buy 1000 shares of rs 10 and if you buy 200 shares of rs 50 both are same thing. if you can invest in morepen, there’s no reas why you cannot invest in wanbury or liberty or page ind.
But I want to hear from you as to how this company is doing ie., Morepen Lab. Is it worth the investment
not too enthused about morepen
Morepen is full scale operator driven stock. it will suck you in and suck you out. I hold morepen since 5rs, It didnt move for a long time, suddenly out of no where it went on upper circuit to 15rs and now non stop lower circuit. So be cautious to invest in current prices. This can be very high risk and reward though.
will strike effect its price sirji pls update us
the management itself is saying that it might affect some part of production
So Price will be down next 2 days ?
how can i know what will happen in price for next two days…normally the product is not affected much because for such events or fire events, companies then outsource the production for sometime. Also, management is saying that production is hampered partially. Also, investors should know this is not the only plant with wanbury…. for someone who was interested in the business and brands, this could be a god sent opportunity to take the plunge if at all…
should i Take chanse to buy current cmp ?
be a scuttlebutt it helps…i would suggest you to go to nearby chemists (3-4) ask about the brands that wanbury has, you will never ever have to ask this question again and all your doubts would remove…. in long term these brands could take wanbury to next level… uncertainty lowers risk (because prices get very depressed)…remember this…
sir, what is your view on Resonance Specialties Ltd, their unique products and their specialisation and their future market
its ok… but i am not convinced enough to take a plunge.
few positive i see is
1. old company
2. profit making company
3. promoter stake is good 67%
4. trade at lower 1.15 of book value
5. first time company paid dividend i.e 0.50paise
please read this what company claim,
“Resonance Specialties Limited” is a pioneer in Pyridine chemistry and one of the few manufacturers of the product in the world. The company, formerly known as Armour Polymers Limited, was the first in India to manufacture Pyridines. Resonance is also one of the largest manufacturers of Lutidines in the world
Ace, what is gts-7? since the time wont matter weather he post early morning or now?
I seriously thought it was Skm egg products but i have my doubts.
not the right blog to discuss all this pls.
The right blog wont approve my comments. Give me a clue?
🙂 you are on the right track is all i would say….
The disappoint part is i knew it since day 2 that it was skm egg but i wasnt convinced to act, but when i decided to act it was uc… None the less. This was actually good fun. Why dont you put something up like this? it educates investors and at the same fun.
hmm…let me give it a thought…it would be slightly different but educational nonetheless…
Hi ace investor,
Has there been a change in the management…Pls confirm what you meant by “Remember the got new top management a few quarters back and the results are for all to see”.
Hi ace investor,
Has there been a change in the management of Wanbury…Pls confirm what you meant by “Remember the got new top management a few quarters back and the results are for all to see”.
yes two new presidents have joined …..one for api and one for formulations and its after that only that they started turning ebita positive
Hi Ace, Happy Diwali !!! 🙂
I am invested in stock Market from last few months so very cautious. I am reading your blog from last few days so I invested in Wanbury yesterday at 45.5 for atleast 1 year. Is the price right in current market? Also, I was getting profit on few stocks with me but those were heavily declined in last few days. 😦 Can you please suggest me how should I book profits with time and when I should exit in case of loss. Regards,
Sorry, Please ignore my message where I said that my query is deleted. I can see now
Please reply first one
Regards,
Sanjay
please post the query again…if not replied
Hi Ace,
I am new to stock market and reading your blog from last few days. Yesterday I invested some money in Wanbury at 45.5 price. Is this price right in current market situation? Also I was earning some profit in my stocks which got declined in last few days. Please share views how we can book profit with time. I invest for atleast 1 year.
Regards,
Sanjay
if you are convinced about a story, a bit of volatility you have to take in stride …thats part of stock markets…there’s no right time to sell a stock, its either when the story is finished, you need money or you have a “significantly” better story in mind. Other strategy is to have return focussed investment, i.e pick a good story and invest to target say, 25% return and take it once it is there… if the stock goes down, you wont feel bad, but if a story is good, it will go up and then you’ll realize that the story had legs and you had identified the right stock…slowly once you repeat this and your successes outwit your failures, and you learn to make money (making money is important to gain confidence in stock markets) you’ll start getting confidence and then you can work with buy and hold strategy rather than targetted returns strategy.
Sorry Ace 😦 Could not understand “Story” word here. (Heard this word first time in terms of stock market.) Is this some new event that can take place in that stock in future like merger etc.? Please elaborate.
Regards,
Sanjay
Story means the stock or the business that you are evaluating
Hello Mr.Ace
Wanbury Ltd has informed BSE that union workers at the Company’s Tanaku, Andhra Pradesh Plant has gone on strike affecting the production partially in that Plant.Management is making all efforts to get back the production to normal capacity.
Do you think this will have negative impact on company? It is still safe to buy?
already replied a number of times on this question buddy…pls go through the comments
Got it. Thanks a lot Ace 🙂
Hey ace did you notice September SHP promoter have pledged 99% shares. And now total pledged shares goes to 69% from 8%. Doesn’t it bother you.
Thanks.
Yes it would if the prices were to follow drastically but so far it’s always held on to its own so right now I am cautiously optimistic
By any chance do you know the result date.. Have searched on bse, couldn’t find one.
First exchanges would come to know about the results date
Why you are changing your tone , earlier you were upbeat on this and now only cautiously optimistic . What should I do , I bought shares mainly on the basis of rosy picture painted by you ?
rosy picture painted by me??? you do not have confidence in it ? why havent you done your research…did you go to your chemist and ask about the brands or not ?? and how did you measure the tone from my words… As always said in this blog, research and then only take the plunge. Clearly you have not done anything and thats why feeling the jitters. There’s absolutely no change in my view
Hi Ace, Any views about India Bulls Wholesale services. They declared there quarterly results today. Should it be hold or sold? Please share views.
Don’t like it
Hi Ace,
Nice to see people like you are helping retail investors in a big way by posting multibaggers much like cupid’s so on. Can you please comment on Arvind Remedies invested heavily @44.60 which was recommended by well known brokerage houses giving targets to 70-120. In my home work I found that it is very much undervalued pharma stock with 4.43 with profit growth of 70% for last five years. I see it as safe bet. Please wirte your opinion on this. It will help me alot.
p/e 4.43
It’s an average bet for me as on date
Hi Ace, Any views on Parabolic Drugs please share. I have bought at 17.20. Currently it is 12.90. Should I book loss or hold it. Also, If you suggest to book loss, any other undervalued scrip I can invest this time as market is very high. I am already invested in Wanbury.
Regards,
Already replied not too interested as of now
Hi ace
First of all great research. Thanks for the picks.
I have a few questions regarding Wanbury. Will be glad if you could help out.
1) As i can see yearly payout on long term borrowings is approximately 35crs. Considering yearly depreciation of 16crs also. Unless the company is able to make a PAT of Rs20crs for the next 3 years and a PAT of 45 crs for the 3 years after that, it will be short of working capital soon. Moreover, these yearly payouts are exclusive of the maturities of the long term liabilities mentioned on the balance sheet. So considering that the company has not been able to be profitable for the last 3 years. Do you think that they will be able to record such a sudden bump in profits? Or do you think they will need to fund the long term maturities through new short term borrowings?
2) Are other foreign subsidiaries in sound health? And will these subsidiaries be able to generate profits to fund repayment of Wanbury’s long term borrowings?
1. thats what the expectations are
2. The only subsidiary with material impact On balance sheet is their Spanish subsidiary
Sir why wanbury is not maving up in spite of uptrend in the market? Is there any bad news associated with it?
no stock goes up everyday.
Hi Ace, Please share views on Vidhi Dye Stuff . Buying at 10 cmp is 9.30. Bought for 3-6 months view. Regards,
Hi Ace, Please reply to the query.
Thanks
Thanks a lot AceInvestorTraderji for bringing the stock in focus. Looks good also based on cause and effect theory of Wyckoff(Long Consolidation since 04.11). Hope the volume picks which would add strength to the breakout.
Dear Ace,
First of all thank you very much in taking effort and patiently answering all the ques. posted to you. Do you have any idea why there’s strike at Wanbury plant and when it is expected to be sorted out?
who said there’s a strike going on ??
I read it on moneycontrol….not aware whether it is called off!
long time back sir…
thnx
sir question is why wan bury NP and G.P margin is so low compare to other pharma stocks.
look at their AR
Should we hold Wanbury as result is on 26 Nov. Less movement in stock. Regards,
are you just focussed on results or do you beleive in long term story here…the answer to this question may well be answer to your questions…god bless
Oops 😛 Seems I ask wrong question.Sorry. Got it Ace, I am invested here for long term.
Regards,
Wanbury going down any specific reason.
Shall we try to sell and come out. Please reply. I am in big loss.
what’s your take on wanbury’s result?
Dear Ace,
Could you give an update on Wanbury ….as to the below expected result of the Company on the Operations front,as it incurred EBIDTA loss and what was the one time exceptional write off.
it already mentioned in the results declared on the exchanges. is there something that you did not understand ?
Yes…why has the raw material costs gone up drastically….without corresponding increase in revenues.Does it means that the company has no pricing power and there’s lot of competition.So going forward this is going to hamper the bottomline.. Am I correct in thinking so? Thnx.
i agree with you question…even i am not sure, have written to the CS (plus a few more questions)…have you also written to the CS? no the company has pricing power…please read their last year AR
No, I have not spoken to the Company.Will do so…
Hello Ace, Why the stock has been on a decline since 25th April. The fundamentals look great but I can’t understand the fall. Please help….
the entire market is sliding so some profit booking is possible. even stocks like HDFC has fallen dramatically. this happens.
—-moderated——
posting of links not allowed. also kindly ensure that no rumors are spread and get a clarification from company before posting anything.
Dear Ace,
I was looking through the last quarter (ended 30 Jun’17) results of Wanbury. For the quarter ended 30 Jun’16, the company has shown an “Other income” of Rs. 83 cr. Revenue from operations for that quarter is shown as Rs. 98 cr; so this “other income” is significant. When I looked at last year’s quarterly report (for Q ended 30 Jun’16), this “other income” was not shown. I tried to look for explanations for this in the 2017 Annual report, but the AR is silent. I could not trace any asset sales either in the cash flow statement.
Would you know what this is? Are you still tracking Wanbury?
i dont think its right…. and looks like a typo ? what did the CS say? I hope you attended the agm to get all your queries rectified.