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Thursday, April 12, 2018

Manugraph: Bullish undertone..

Manugraph
CMP: 47.5 Mcap:144.47cr..

Was just looking at Manugraph.. 
Feb 7,2018 outcome of Board meeting states:

Board approves proposal to merge 100% subsidiaries and group companies with Manugraph..

WOW!!! Thats BIG Really BIG News!!



now if I look at companies with similar addresses as manugraph

it states there are 2095 companies with similar addresses.. I checked a few... not all 2095 companies have same promoters as manugraph..(the one marked is not a promoter company)  but to say the list above is the complete list of companies owned by promoters would also be wrong..

So all said and done.. the statement that promoters are going to merge group companies into manugraph.. means we are going to see value unlocking.. 

predicting when that will happen .. would be speculating.. 

No of shareholders:
Dec 2017: 11,221 
Dec 2016: 11,942
Dec 2015: 12,248
Dec 2014: 11,873
Dec 2013: 12,404

lowest no of shareholders in past 5 yrs!!

Lets close by saying this is an interesting development to be kept in mind.. with bullish undertones..

=happy investing
whatsup-indianstockideas.blogspot.com

17 comments:

Anonymous said...

Whatsupji,

Do you see it going up anytime soon?

What'sUp Prahalad said...

Wish it was as easy as me "saying it" and the stock moving up..
to create wealth from Equities one needs:
-10% money
-20% knowledge
-30% luck
-40% patience..

the key is patience... which is the game changer..

=happy investing
whatsup-indianstockideas

Anonymous said...

Could there be a re-valuation of the share price post these merging of group companies?

Anonymous said...

Whatsupji,

Looking at the current moment of Manugraph, Do you feel it's an exit?

What'sUp Prahalad said...

buy karo with both hands is my advice..
company fundamentals have not changed..

its a long term value stock.. its just that there is a cash crunch and hence there is selling across the board as Govt of india has reduced the float of cash in the market (to keep inflation in check)

=happy investing
whatsup-indianstockideas

arumugam T Doss said...

In the amalgamation process, management smartly didn't include the multigraph machinery (Sales division). What's your thought on this?


Venkatesh Govindaraju said...

Dear Whatsup Ji,

Hope all well. Manugraph has declared dividend inspite of posting Loses this year. How is this possible? I am holding 20k stocks.
Thanks.Venkatesh

Anonymous said...

Hi Whatupji,

Please share your inputs on the results of manugraph and how you see the way ahead?

Anonymous said...

Hi Whatupji,

Your inputs on the steep fall of manugraph share price from your recommendation price?

What'sUp Prahalad said...

Manugraph is a value investment not a trading call.. I dont see how it can be a sell @35 when it wasa buy @50.. The way the company runs its business is..it expenses out the warranty period maintenance cost from the cost price.. and at the end of the warranty period the savings are written back (interestingly contingent assets are not included into accounting.??
=========================
Provisions, Contingent Liabilities and Contingent Assets
i. Provisions are recognised only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.
ii. Provision for product related warranty costs is based on the claims received upto the year end as well as the management estimates of further liability to be incurred in this regard during the warranty period, computed on the basis of past trend of such claims.
iii Contingent liability is disclosed for possible obligations which will be confirmed only by future events not wholly within the control of the company or present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

iv Contingent assets are neither recognized nor disclosed in the financial statements.
=====================
This warranty period costs makes it look like the company is reporting losses..

Market as such is going through a dull phase..
1. Banks have to value equity investments @ 50% of their current value so banks donot want to hold on to equity..
2. There is a cash crunch to keep inflation in check..
3. tax payment period is generally a dull period for market as money moves out of the market..

This is a good time to accumulate all those stocks that we have conviction in..

=happy investing
whatsup-indianstockideas.blogspot.com

Anonymous said...

Thanks Whatupji for your valuable inputs as always.

Sonal Jain said...

A budget is telling your money to go instead of wondering where it went.
mcx tips

Anonymous said...

Hi Whatupji,

Could you please list you top 4 value picks from your recommendations which are best to invest as on today in order of priority?

Anonymous said...

Hi Whatupji,

Please share your thoughts on the results and do you feel it's still a multibagger?

What'sUp Prahalad said...

Anonymous ji:

dont know which ones will click.. but my top holdings are:
jayant agro, manugraph, tilaknagar, kulkarni power, ester, bemco
=happy investing
whatsup-indianstockideas

What'sUp Prahalad said...
This comment has been removed by the author.
Anonymous said...

Hi Whatupji,

Manugraph is not moving at all and has been falling from its levels of Rs.50 in 2010. Do you think it's still a multibagger. Your thoughts?