VAKRANGEE
LTD
RESULTS
FOR Q3 FY 2017-18
Q E
DECEMBER 2017
VAKRANGEE has produced very good results for Q3 ending December 2017.I have analyzed the results
earlier in another Blog post. Thereafter, the share price was moving in tandem
with the results. However, following a false Press report that the company was involved
in some price/volume manipulations on the stock market, that SEBI is
investigating into these matters,and
also following a share BUY by Vakrangee on the PC Jewellers Ltd company,
Vakrangee came under a severe cloud and market started entertaining suspicions
about the company operations.
Following these
suspicions, investors started deserting the company on fears of a deep slump in
its market price. Thus, the company's share price fell to Rs.190 from a high of
over Rs.500.
The Company's
MD, Shri Dinesh Nandwana came on various TV Channels and clarified on all
points of suspicions in the market adequately. He has answered most aspects of
criticism satisfactorily. On share Buys of PC Jewellers etc in the Market, the
company has undertaken to reverse the same by selling back.
The company has built up huge cash reserves and is a
DEBT FREE COMPANY. The company has a ASSET-LIGHT FRANCHISEE MODEL which
requires very little capital expenditure and the company has enough cash
reserves to meet any capital expenditure.
The company also announced a capital allocation policy
for adequate dividend distribution and also a share buy-back, apart from
capital expenditure on R&D etc. These measures, when implemented actually,
are sure to restore INVESTOR CONFIDENCE again. Unless, there is some hidden
news, the explanations of the company are definitely satisfactory and meet most
of the criticism levelled against the company.
Yet, even after these TV Channel explanations in person
by the MD, the share price of Vakrangee is yet to recover from the LOWS it has
sunk into - so far.
It is however, my feeling that, slowly but surely, the
company's share price will recover back to more normal levels.
The company has a Huge and impressive Expansion program
on hand for each quarter, which is expected to raise its Top Line and Bottom
Line both impressively in the coming quarters.
The what-if analysis below is purely my forecast and is
not a recommendation to BUY / SELL / HOLD RECOMMENDATION for others.
|
VAKRANGEE-CONSOL
|
Dec '17
|
Sep '17
|
Dec '16
|
YOY
|
QOQ
|
|
Net Sales
|
1,802.42
|
1,550.79
|
978.86
|
84.13
|
16.23
|
|
Total Income
|
1,802.42
|
1,550.79
|
978.86
|
84.13
|
16.23
|
|
EXPENDITURE
|
|||||
|
Consumption of Raw Materials
|
1,357.20
|
1,236.01
|
722.6
|
87.82
|
9.8
|
|
Increase in Stocks
|
54.04
|
1.5
|
3.76
|
1337.23
|
3502.67
|
|
Employees Cost
|
18.45
|
16.3
|
10.78
|
71.15
|
13.19
|
|
Depreciation
|
0.79
|
0.69
|
19.07
|
-95.86
|
14.49
|
|
Other Expenses
|
14.87
|
9.53
|
9.15
|
62.51
|
56.03
|
|
P/L Before Other Inc., Int., Excpt. Items & Tax
|
357.06
|
286.76
|
213.51
|
67.23
|
24.52
|
|
Other Income
|
8.17
|
3.86
|
0.78
|
947.44
|
111.66
|
|
P/L Before Int., Excpt. Items & Tax
|
365.23
|
290.62
|
214.29
|
70.44
|
25.67
|
|
Interest
|
1.29
|
2.75
|
13.19
|
-90.22
|
-53.09
|
|
P/L Before Tax
|
363.94
|
287.87
|
201.09
|
80.98
|
26.43
|
|
Tax
|
117.28
|
98.07
|
69.54
|
68.65
|
19.59
|
|
Net Profit/(Loss) For the Period
|
246.66
|
189.8
|
131.55
|
87.5
|
29.96
|
|
Equity*
|
105.88
|
52.94
|
52.92
|
100.08
|
100
|
|
Basic EPS
|
2.33
|
3.59
|
2.49
|
-6.43
|
-35.1
|
|
Diluted EPS
|
2.31
|
3.58
|
2.48
|
-6.85
|
-35.47
|
|
MP
|
190
|
||||
|
VOLUME
|
1465938
|
ON NSE
|
|||
|
PE
|
20.56
|
||||
|
WHAT-IF ANALYSIS
|
|||||
|
CURRENT
|
Q4
|
Q4
|
Q4
|
Q1FY19
|
|
|
QTRLY EPS
|
2.31
|
(IF)2.6
|
(IF)3
|
(IF)3
|
(IF)4
|
|
PE
|
20.56
|
(IF)20.56
|
(IF)20.56
|
(IF)25
|
(if)25
|
|
MP
|
190
|
214
|
247
|
300
|
400
|
As
already said, the what-if analysis is constructed by me to estimate the future
within reasonable assumptions. It is definitely not a recommendation for
BUY/SEL/Hold for other investors.
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N D *
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