Results Update !!!

Mangalam Drugs

Sales for the quarter increased to 75.5cr from 37.7cr YoY and profits were relatively flat at 3.49cr vs 3.89cr. Sales for the quarter increased from 60.7cr to 80.3cr QoQ and profits increased from .84cr to 3.49cr for the same period. For the year ending FY15, Sales increased from 122.5cr to 220.5cr and bottomline gave a staggering turnaround from a loss of 3cr to a profit of 6.14cr. The company has given a solid turnaround on expected lines with last quarter’s results better than my own expectations. The rerating should continue on back of such record solid earnings.

DHP India

Sales for the quarter decreased from 13.3cr to 9.61 cr YoY and profits declined from 2.66cr to 1.9cr. Sales for the quarter remained almost flat at 9.61cr vs 9.93cr QoQ but profits increased from 1.23cr to 1.9cr for the same period. For the year ending FY15, Sales declined from 49.5cr to 40.76cr and profits declined from 7.4cr to 6.12 cr. As mentioned in the stock story, I was expecting a muted last quarter YoY, but still the company has given much better last quarter. I hope to see the revised financial results to get a better understanding of the balance sheet as page 3 of the document was missing and along with it, we’ll come to know about dividend.

Tirupati Sarjan

Sales for the quarter increased to 62.7cr from 38.5cr YoY and profits increased from 1.98cr to 2.37cr. Sales for the quarter increased from 39.84cr to 62.74cr QoQ though profits decreased from 3.33cr to 2.37cr for the same period on back of higher raw material cost. For the year ending FY15, Sales increased from 127.7cr to 161.1cr and profits increased from 6.14 cr to 7.11cr. Its important to note that as mentioned in the results release, declaration of the dividend would be decided while announcing Audited results. Also, interesting to note is the swelling cash balance, increasing promoter holding and reducing debt. Cash on the books are 31.59c and the total market cap of the company is just 38cr. Promoter holding has increased significantly to 54%. These are good numbers on all accounts.

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87 Responses to Results Update !!!

  1. Akshay says:


  2. hafizul09 says:

    Hello Ace ji…Thanks for putting it together and ur views on the results….however one small query on Managalam…..from the pdf document submitted to BSE, I understand that the sales for this Q is 80cr. but as the other operating income is negative close to 5 cr. the net sales is 75 cr……so which one to consider for actual sales…..also in 1st line u mentioned sales 75 cr. but in 2nd line u mentioned 80 cr…..why is that? sales figure should be same in both 1st and 2nd lines right……… Thanks in advance!!!!!!!!!!!

    • net sales is different from net income…

      • hafizul09 says:

        Hello Ace ji…..I think I was not able to make u understand my exact q….will try again……quoting ur first 2 part of two lines– in 1st one u said
        “Sales for the quarter increased to 75.5cr”—which says Q4 sales is 75.5cr
        But in 2nd one u said
        “Sales for the quarter increased from 60.7cr to 80.3cr”—-which says Q4 sales in 80.3cr.

        How come same Q4’s sales be different(75.5cr & 80.3cr)? This was my actual Q…hope q is clear now….waiting for ur ans…..Thanks in advance!!!!!!!!!!

        • you are right.. my mistake…it should be 75.5 cr only..thanks for pointing out

          • hafizul09 says:

            No problem Ace ji… the way i am extremely bullish on Waterbase and Prima as expecting very good result along with good dividend from these two guys…….i have another guy which is Gujerat Themis—expecting good result from this as well along with the exact details of the Lupin contract which we expect to be better than last contract and will make the future earning and growth more visible………Thanks for finding these good guys for us……Cheers!!!!!!!!!

  3. shreeux says:

    Thanks for update..

  4. kannu says:

    Ace your view on Pincon Spirit at current level for investment. Thanks

  5. totalsiyapaa says:

    in Feb they got approval for TENOFOVIR”. Do you mean approval by some other body other than WHO ??

    • they got approval for the DMF filed.

      • totalsiyapaa says:

        but sir i was reading some comments somewhere that they got Tenofovir approval in dec last year and that’s why the turnover was so high…

        • i dont know what you read somewhere but i got this information and timeline from the company itself. Ideally they should declare that in the exchange filings. Independent of this, the turnover was not high because of tenofovir because forget about approval, its the capacity that mangalam has does not justify this thesis. tenofovir has hardly capacity of 2-3 tonnes VS 45-50 tonnes capacity of anti-malarial, so obviously it proves that tenefovir has no hand behind this increase. Would suggest you to atleast get in touch with mangalam CS to get things clarified.

  6. Sameer Anand says:

    An other influential blog is running a guess the stock quiz and what I understand the correct answer is Wanbury. Kudos to ACE for identifying it first.

    • see, please understand that it does not matter who identifies a stock first. what matters is that such endorsements makes a conviction stronger for a stock. so just because i or anyone else recommends a stock first does not make me or that person the patent holder of that stock discovery πŸ™‚ ……so lets not pls get into all that…

    • sukant says:

      no its not wanbury,wanbury reported profit in 2010

    • hafizul09 says:

      But Wanbury does not satisfy one condition ” Company reporting loss ever since its listing ” because Wanbury has reported positive net profit in FY 2005,2006,2007,2008 & 2010……so I don’t think it will be Wanbury……

  7. DM says:

    Dear Ace, have you disabled replies on old threads?

    Regarding Sharp, parent company making huge losses and 10% job cut of total workforce (none from India). How would this impact the Indian operations?

    This script will require a lot of patience but is it worth staying put? How do you see the turnaround and future? Also would like to know about their B2C business.

  8. Adil Shah says:

    sir what is your view on pfrl,, i am using their product and it is always great quality, with recent advancements looks like a multibagger. ur call?

  9. hafizul09 says:

    Hello Ace ji….you have mentioned in ur stock story that Wanbury was very risky stock(when u posted the story)…as on today’s date how risky it is…? is there anything which can go wrong from here or everything should go well from where(I understand no one can guarantee but pls tell ur current view) provided new management gives their full effort….?also is there any chance of any further write off?…Thanks in advance!!!!!!!!!

    • you tell me that…there’s a lot of discussion that’s been done on the stock , please do your own research on risk because risk is persona dependent too and as far as i know you, these kind of stocks are not for you. I am actually surprised that you are evening thinking of buying wanbury because your gut i guess may not be able to take the volatility. Having said that i beleive a lot in the wanbury story.

      • prabu says:

        Ace , We know that you are not tracking Cupid which is one among ur old recommendation.. could you please advice on March 15 results posted today and board has recommended dividend of 0.5 in addition to 1 rupee interim recommended last quarter.. Awaiting ur response.. Thanks for your help..

        • i am tracking the company. the results on an annual basis looks good as expected though one should also take congnizance of the fact that the order intake is flat. So lets try to understand how the growth will come. also i was expecting a more liberal dividend but would take an annual dividend of 1.5rs with both hands.

          • prabu says:

            Thanks Ace… I saw the orders on hand around 27 crores which should be good for atleast 2 quarters from now… Need to discuss with Management about future orders… Just wanted to know whether one can continue to hold for few more quarters before taking any decisions… Thanks..

      • hafizul09 says:

        Hello Ace ji…Thanks for ur view on Wanbury——i can tolerate risk and volatility. no isue with that provided i am sure about the future of the company—–if the company’s future is bright business wise then i am a big risk taker for that company and that is the reason why i bought Mangalam Drug and made in my core portfolio as i am sure they will be doing well business wise………i believe Wanbury should do well in future with the new management is doing well and also they have good brand——-and also i dont think there will be any big write off either——-so now i am lot confident on Wanbury than that of the past——–will keep an close eye on this—and should enter as and when get some fresh cash…….Thanks for ur view though!!!!!!!!

  10. don says:

    sir, vidhi made a strong move yesterday…it looks all set to move a lot higher

  11. AJ says:

    How do you rate Pantaloon Fashion and Retail, and if can we but at current levels?

  12. STP says:

    Vidhi Dye again up by 3%.. Prima too at 65 levels.. Satisfying… isn’t it….

  13. yash says:

    Sir what is the pe of Vidhi dyestuff? is it trading at 15 pe? Sir dont take me wrong but i am getting confused.

    • best way is to look at last four trailing quarter’s PE to calculate PE. also by next week in any case we’ll come to know this year’s EPS. as per my estimates its still trading at single digit FY15 PE

      • R K SINHA says:

        You are right sir. Vidhi is trading PE 8.24 of estimated PE of FY 15 against its peers Camline Fine Sciences PE 35 and ADI Finchem PE 29 of FY 15. For forward EPS 3 for FY 16, it is available only PE 7. Rerating soon.

        • yes vidhi deserves much higher PE, especially since its the only listed food colors specialist unlike others

          • R K SINHA says:

            ace sir, it may go to 100/- in next one year. Earlier Camlin Fine Rs.2 face value share was trading @20 in year 2013. Now its Rs 1 face value share is trading @95 in 2015.
            Vidhi capital is only 5 crores and promoter holding is 64%. In view of increasing profit @100% over previous year, value of Vidhi share naturally boom.

            • if the performance is there, then why not but one year is more like a punter speaking. lets see though because if the re-rating happens then the PE rerating itself can take it near to those levels. vidhi is not comparable to camline because vidhi is purely food colors and therefore, is more interesting to me

  14. Sameer Anand says:

    ACE, what’s your opinion on Take Solutions at CMP. It posted good results recently.

  15. Sameer Anand says:

    ACE if you track NGL Fine Chem. Please provide your opinion on that too.

  16. hallagulla says:

    Ace sir,
    Your views on D-link in context of “Smart City’ and NOFN missions of new Government….I think as Cybertech will benefit due to its focus on software products D-link is also likely to benefit due to its prominence in networking hardware products ! Your expert opinion please…..

    • not interested in dlink

      • hero says:

        whats your view on mm forging results & its future prospects?

      • Sam says:

        Can you please share why you not interested in dlink.. for a common man like me its one of the biggest companies into networking and with all the smart city hype i believe it will benefit. Can you please share where am i thinking wrong. Would love to know and improve on how I think about business. Thanks

        • errant cash flow, hardly any product line which gives them an edge and very low OPM in an industry which is highly fragmented. So not interested. if I were to design the network backbone for a smart city i wouldnt depend on a D-link router but rather an Avaya or a Cisco router and that hopefully sums up my take on its capabilities.

  17. yash says:

    Hello Ace sir, had a doubt…Suppose if i have xyz share which has an eps of 10 for fy15….And it declares Rs 2 dividend…to find its value will we multiply by 8 or 10. Like suppose we assign a pe of 20,then should fair value be 8 multiply by 20= 160 or 10 multiply by 20= 200. Do we have to deduct dividend from eps beforr assigning it pe? Thanks sir.

  18. sangram says:

    Had u seen skm results

    • no. i dont even know if the results are today or not because i have dropped it from my radar as at 450cr market cap, i booked out a few days back. I am not comfortable with the valuations as from my own estimates it was trading at around 23 kind of PE and probably around 2 times sales… I am not saying it cannot go up but for me the maximum juice is out and i would rather bet on something more conservative with better growth potential. I could be wrong but i have made my money here so not interested anymore. But its been a good turnaround company and has done well and it could annually give good results but look at QoQ also, because from now on, the growth would dictate valuations and not re-rating..

      • Sameer Anand says:

        That’s quite Candid ACE on your part. Normally you dont reveal your “Personal Trades”.

        What can we expect from Wanbur’s results tommorrow? And please no counter questions!

        • yes, that’s because its not my recommendation and i wanted to get this off my back. by the way its not to say that skm is a bad company or something. those guys have done a good job so far so people should not be unduly worried about anything.

          • Roshan says:

            they are yet to completely start exports to russia and russia is going to be a huge market for them..then y did u book out ace? i thought wealth creation was a long process…

            • russia is fine, but rouble isnt and that can give a either a positive or negative surprise and therefore, for me it did not make too much sense, especially if you combine this risk with the fact that its a livestock based business (i already have an alternative for that). moreover for me its just a trading bet ..a re-rating game for a few quarters. and when you make 8-9 times in a quarter and you know its not an investment theme for you, one has to learn to make money by booking profits. again, its not a bad stock and at a price it becomes attractive again for some people

              • Teja says:

                Ace, I’m not sure if I can ask this, but asking out of curiosity can you please let us know the alternative for SKM, that you have mentioned in your above comment.

              • see, that was in context of livestock based business, so my bias is towards waterbase. also please understand that skm is good in itself. for me it was a trading bet and taking profits was part of my portfolio strategy. if someone has a long bias he should hold on because its a good company and i also saw the results which are pretty decent. so one should take their own call. for long term its a good position to be in.

  19. vivek gupta says:

    Hi Ace,
    How do find Mirza Intl, DCM Shriram(has a good seed business, Haryali retail discontinued),

    Thanks in advance.
    Vivek Gupta

  20. Teja says:

    Thanks for your reply Ace, I’m in to SKM for long run, and played waterbase as a trading bet, now looking to enter waterbase again, will take advantage of today’s dip. Once again, thanks for the reply πŸ™‚

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