Comments on: Manjushree Technopack (MT) http://dalaal-street.com/manjushree-technopack-mt/ Monies and Conversations Tue, 27 Jul 2010 15:09:53 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Manjushree Technopack – In depth snapshot | Dalaal-Street http://dalaal-street.com/manjushree-technopack-mt/#comment-1471 Manjushree Technopack – In depth snapshot | Dalaal-Street Mon, 11 Jan 2010 05:40:38 +0000 http://dalaal-street.com/?p=232#comment-1471 [...] We covered Manjushree Technopack recently and the stock has shown a pretty good movement since then (as was expected). MTP (Manjushree Technopack) is one of the companies we have loved to work upon. Together with Donald and his esteemed team, we had collected all the data and did some very useful research and compared the same with the peers. The same has been brilliantly compiled and presented on his site along with 10 Questions to Manjushree Technopack Management: [...] You see negative Free Cash Flows, but that’s not a bad thing for a company in its early growth stages. It is investing all the profits it generates and more back into business expansion. As you can see even the much bigger global majors report marginal or negative free cash flows in this industry. [...] [...] We covered Manjushree Technopack recently and the stock has shown a pretty good movement since then (as was expected). MTP (Manjushree Technopack) is one of the companies we have loved to work upon. Together with Donald and his esteemed team, we had collected all the data and did some very useful research and compared the same with the peers. The same has been brilliantly compiled and presented on his site along with 10 Questions to Manjushree Technopack Management: [...] You see negative Free Cash Flows, but that’s not a bad thing for a company in its early growth stages. It is investing all the profits it generates and more back into business expansion. As you can see even the much bigger global majors report marginal or negative free cash flows in this industry. [...]

]]> By: Investor http://dalaal-street.com/manjushree-technopack-mt/#comment-1439 Investor Mon, 04 Jan 2010 04:29:26 +0000 http://dalaal-street.com/?p=232#comment-1439 wonderful rally in the stock. I am out partially - the runup of 50% in the stock (32 levels to 49 today) has been wonderful & rewarding! I am looking forward to them getting new customers especially in the liquor space. wonderful rally in the stock. I am out partially – the runup of 50% in the stock (32 levels to 49 today) has been wonderful & rewarding! I am looking forward to them getting new customers especially in the liquor space.

]]> By: Ayush Mittal http://dalaal-street.com/manjushree-technopack-mt/#comment-1421 Ayush Mittal Wed, 30 Dec 2009 15:17:43 +0000 http://dalaal-street.com/?p=232#comment-1421 I don't think the debt will overshoot 50 Cr by March 2010. As per my interaction with them, they haven't been utilizing the loan limits. The recent approval from SBI is for the future possible needs and they may not be utilizing the whole limit. The company is doing the expansions based on the commitments and understandings from the existing cos. Yes, there are always risks in expansion, but so are the rewards :) Ayush I don’t think the debt will overshoot 50 Cr by March 2010.

As per my interaction with them, they haven’t been utilizing the loan limits. The recent approval from SBI is for the future possible needs and they may not be utilizing the whole limit.

The company is doing the expansions based on the commitments and understandings from the existing cos.

Yes, there are always risks in expansion, but so are the rewards :)

Ayush

]]> By: Investor http://dalaal-street.com/manjushree-technopack-mt/#comment-1419 Investor Wed, 30 Dec 2009 05:17:51 +0000 http://dalaal-street.com/?p=232#comment-1419 Do you have any idea how much will be the debt of the company by Mar 2010? http://www.bseindia.com/xml-data/corpfiling/announcement/Manjushree_Technopack_Ltd1_291209.pdf At the end of Mar 2009 this was 30 cr, going by this, they will add another 100+ cr, debt equity will go above 1. This kind of leverage is certainly not good. Do you have any idea how much will be the debt of the company by Mar 2010?
http://www.bseindia.com/xml-data/corpfiling/announcement/Manjushree_Technopack_Ltd1_291209.pdf

At the end of Mar 2009 this was 30 cr, going by this, they will add another 100+ cr, debt equity will go above 1. This kind of leverage is certainly not good.

]]> By: Investor http://dalaal-street.com/manjushree-technopack-mt/#comment-1416 Investor Tue, 29 Dec 2009 03:07:30 +0000 http://dalaal-street.com/?p=232#comment-1416 Thanks for your inputs! I do look forward for a rewarding investment in this company. I will be in touch with you through this blog. Thanks for your inputs! I do look forward for a rewarding investment in this company.

I will be in touch with you through this blog.

]]> By: Ayush Mittal http://dalaal-street.com/manjushree-technopack-mt/#comment-1412 Ayush Mittal Sat, 26 Dec 2009 12:15:56 +0000 http://dalaal-street.com/?p=232#comment-1412 Dear Investor, Thanks for your wishes. Answering your queries: On full payment of machinery – there is an unsecured loan of 9.89 Cr from Huskey, classified as trade credit...though they have also written that the same will be repaid out of rupee term loan from SBI :-|. This trade credit might be at a very low interest rate. Regarding accounting of sales & inventory – As per the accounting standards, sales are to be booked only on delivery (or similar nature) and no revenue should be recognised on inventory. So as there are no auditor qualifications, I doubt if they are doing anything wrong. Yes, I have gone through their RHP of 2007. I don’t think there is a big liability if they are unable to complete the export obligation – at max it will be 25-30 Lac rupees. I tried benchmarking the performance of the company as compared to other players in same field. They have the best fundamentals. Raw material and competition is the main worry of this industry. There is always a pressure on margins and they don’t have too much of a pricing power. But in case of raw material price inc, they should be able to pass on the cost in the long run - as it is a industry problem. Dear Investor, plz send over an email briefing about yourself and contact details....will like to call up and touchbase. Regards, Dear Investor,

Thanks for your wishes.

Answering your queries:

On full payment of machinery – there is an unsecured loan of 9.89 Cr from Huskey, classified as trade credit…though they have also written that the same will be repaid out of rupee term loan from SBI :-| . This trade credit might be at a very low interest rate.

Regarding accounting of sales & inventory – As per the accounting standards, sales are to be booked only on delivery (or similar nature) and no revenue should be recognised on inventory. So as there are no auditor qualifications, I doubt if they are doing anything wrong.

Yes, I have gone through their RHP of 2007. I don’t think there is a big liability if they are unable to complete the export obligation – at max it will be 25-30 Lac rupees.

I tried benchmarking the performance of the company as compared to other players in same field. They have the best fundamentals.

Raw material and competition is the main worry of this industry. There is always a pressure on margins and they don’t have too much of a pricing power. But in case of raw material price inc, they should be able to pass on the cost in the long run – as it is a industry problem.

Dear Investor, plz send over an email briefing about yourself and contact details….will like to call up and touchbase.

Regards,

]]> By: Pratyush http://dalaal-street.com/manjushree-technopack-mt/#comment-1409 Pratyush Thu, 24 Dec 2009 16:55:41 +0000 http://dalaal-street.com/?p=232#comment-1409 Hi, I haven't gone through the reports of the company yet and thought of replying once I read them. However, I had been engaged in programming of a new stock screener for Indian stocks. We had planned to launch it this year, and thus had to meet this self-set deadline. The beta is ready, and we would love to have you try it out (it should be extremely useful for any fundamentalist). Do flip me an email at pratyushmittal [at] hotmail [dot] com and I will send you the invite. Also, brother will be back by tomorrow and using his genius analysis should answer your queries soon. Extremely sorry for the late response, regards, Pratyush P.S.: Updated the email, had mis-typed it earlier :P Hi,

I haven’t gone through the reports of the company yet and thought of replying once I read them.

However, I had been engaged in programming of a new stock screener for Indian stocks. We had planned to launch it this year, and thus had to meet this self-set deadline.

The beta is ready, and we would love to have you try it out (it should be extremely useful for any fundamentalist). Do flip me an email at pratyushmittal [at] hotmail [dot] com and I will send you the invite.

Also, brother will be back by tomorrow and using his genius analysis should answer your queries soon.

Extremely sorry for the late response,
regards,
Pratyush

P.S.: Updated the email, had mis-typed it earlier :P

]]> By: Investor http://dalaal-street.com/manjushree-technopack-mt/#comment-1400 Investor Fri, 18 Dec 2009 01:47:49 +0000 http://dalaal-street.com/?p=232#comment-1400 Wonderful! Give my wishes and regards to your brother! While you are at it, I was wondering on - How does the raw material prices affect the company. Do they have long term contract with their suppliers? Can they pass on any increases in raw material to their customers (Pricing power)? Do they have any innovations to their credit? Wonderful! Give my wishes and regards to your brother!

While you are at it, I was wondering on –
How does the raw material prices affect the company. Do they have long term contract with their suppliers? Can they pass on any increases in raw material to their customers (Pricing power)?
Do they have any innovations to their credit?

]]> By: Pratyush http://dalaal-street.com/manjushree-technopack-mt/#comment-1396 Pratyush Tue, 15 Dec 2009 17:45:14 +0000 http://dalaal-street.com/?p=232#comment-1396 Hi Dear Investor, Bhaiya (Ayush) got married last week and is on a short leave. He would love to reply to the queries and might get in touch with the management once he is back (probably in two weeks time). Hope you don't mind the wait. Regards, Pratyush Hi Dear Investor,

Bhaiya (Ayush) got married last week and is on a short leave. He would love to reply to the queries and might get in touch with the management once he is back (probably in two weeks time).

Hope you don’t mind the wait.

Regards,
Pratyush

]]> By: Investor http://dalaal-street.com/manjushree-technopack-mt/#comment-1394 Investor Mon, 14 Dec 2009 04:17:06 +0000 http://dalaal-street.com/?p=232#comment-1394 Appreciate you taking time for the response. If you do get an opportunity to dig into this more, kindly post here. I also see from your profile that you are a CA by education - This is a fantastic opportunity for you towards studying the company balance sheet in detail. If possible please throw some light on how the company is accounting especially do they book revenue on delivery to the customer/order recieved/do they book revenue on their inventory etc. I would also encourage you to go through their RHP of 2007 - The export related clause is a very important one - I find that they have not made any mention of this in their latest annual report which is a disappointment. To the best of my knowledge they have made a full payment towards the machinery, so the interest payment is definitely something that should be queried to the company. Other information that would be useful is to find out if they do benchmark themselves in the industry. I have written to the management by email; if they do choose to respond I will post the comments here. In the meanwhile I will encourage you to connect with them as well. Appreciate you taking time for the response.

If you do get an opportunity to dig into this more, kindly post here. I also see from your profile that you are a CA by education – This is a fantastic opportunity for you towards studying the company balance sheet in detail. If possible please throw some light on how the company is accounting especially do they book revenue on delivery to the customer/order recieved/do they book revenue on their inventory etc.

I would also encourage you to go through their RHP of 2007 – The export related clause is a very important one – I find that they have not made any mention of this in their latest annual report which is a disappointment.

To the best of my knowledge they have made a full payment towards the machinery, so the interest payment is definitely something that should be queried to the company.

Other information that would be useful is to find out if they do benchmark themselves in the industry.

I have written to the management by email; if they do choose to respond I will post the comments here. In the meanwhile I will encourage you to connect with them as well.

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