MANPASAND BEVERAGES LTD - Q4 FY 2018 RESULTS - A REVIEW

MANPASAND BEVERAGES LTD 

Q4 FY 2018 RESULTS - A REVIEW

As Investors are aware, Manpasand Beverages was going through a rough patch on the stock exchanges after the Auditor resigned. 

Investors feared the worst, after the Auditor resigned.Therefore, the Market price of Manpasand Beverages fell very rapidly and drastically.The fall was as much as 58% in one month duration.

The operational performance of Manpasand was fairly decent in the last 5 quarters and it had decent top line and bottom line both in all quarters. It had declared Bonus shares also 2 quarters ago - Sep / Oct,2017.

This took the Equity from Rs.57.22 cr to Rs.114.46 crores 

Yet, the EPS in Q4 now is 3.73 against 2.74 in the Q4 last year. Compared to Q3 EPS of 1.05, current EPS is highly impressive, even considering the seasonal nature of the Business. 

The company has declared huge expansions, which will double the production, sales and net profits within a short time.  The company is sure of great demand for its products. It is also coming out with several New products periodically. The capital works in progress has registered a huge increase to Rs.181 Cr against Rs.18 cr last year. Let us assume that this expansion will be completed efficiently and promptly.

It has excellent distribution chain all over India and is set to leave its foot print in all corners of India.

This blog will not make a specific BUY recommendation for any scrip as a policy. That decision is purely the decision of each Individual Investor. That said, every long term investor needs to consider the Management quality, their ambitions, the products of the company, the expansion plans, the investor friendliness of the Management and so on, in deciding on investing in the company. All these aspects seem to be reasonably good for Manpasand, right now. However, the company has declared a paltry dividend of 5% which is insensitive to the investors who lost a lot of their wealth in Manpasand.

Is it a Potential Multibagger? It could well be. Only the Future will tell. Stock Market is a place where you need to take some well reasoned risks and hope for good rewards in the future. Long term investment is not at all SPECULATION. But, it is a well reasoned Prediction of the future. That said, Future is future and  is never 100 % certain in its result.This game is therefore for people who can take such well reasoned risks.Any Business has these risks and rewards.

Now, Here are the Q4 results :

MANPASAND Mar'18 Dec '17 Mar '17 YOY QOQ Net Sales 384.76 143.13 273.41 40.73 168.82 Raw Materials 237.12 105.86 168.87 40.42 123.99 Traded Goods 3.29   -- 0.49 571.43  -- increase in Stocks -7.67 -18.9 6.27 -222.33 -59.42 Employees Cost 7.92 6.17 6.57 20.55 28.36 Depreciation 28.36 17.55 24.06 17.87 61.6 Other Expenses 71.14 23.27 33.25 113.95 205.72 profit before exceptional items 51.72 13.93 36.11 43.23 271.28 Other Income 8.18 5.3 8.52 -3.99 54.34 Interest 1.05 0.55 0.1 950 90.91 P/L Before Tax 51.72 13.93 36.11 43.23 271.28 Tax  9.02 1.94 4.77 89.1  364.95 Net Profit 42.74 11.99 31.34 36.38 256.46 Equity 114.46 114.46 114.46 57.22 100.03 0 EPS (FV RS.10) Basic EPS 3.73 1.05 2.74 36.13 255.24 Diluted EPS 3.73 1.05 2.74 36.13 255.24 MP 143 PE 9.58445