Thursday 8 February 2018

Monte Carlo Fashions: Results Update Dec-17 Quarter



Monte has given great set of numbers for Dec-17 quarter. Top line 355 cr vs 290 cr. PBT at 73 cr from 53 cr but if we exclude other income of last year then the same are 72 cr vs 44 cr. Great show. So far in this year for 3 quarters it has given a Topline of 560 cr vs 490 cr and PBT (Excluding other income) at 91 cr Vs 60 cr which ,for me, shows that its losses from summer-wear business are falling and it is growing fast. Not to forget that for past one year it has weathered the shock of Demonetization and GST otherwise the growth could have been even higher.

This is one stock where market is failed to recognize the underlying strong business strength and relatively very cheap valuations. Market is apprehensive of its success in summer clothing business and wants to play the waiting game but in my view due to its inherent distribution and marketing strength of very strong (Best in India) winter wear business it will find success in summer business. It doesn’t need to build its distribution and marketing from scratch for summer business. Second, it has very strong balance sheet with nil debt, good inventory and debtor management, good and consistent dividend policy (yield 2%) which will grow in the future. So I think market has managed to somehow ignore these factors and it is trading at cheaper valuation of 20 PE. Good buy at present levels of 560.

(Views are personal and should not be taken as a recommendation for buying or selling a stock. Stock markets are inherently risky so kindly do your Due Diligence before investing. I am not a certified Sebi Analyst and holding the stock discussed in this Post).

8 comments:

  1. Dear Sir,
    Kindly provide ur view on results of Lokesh Machines.

    ReplyDelete
    Replies
    1. Yes Dear working on it along with some other stocks. will update

      Delete
  2. Sir any comment on Kiran Vyapar result??

    ReplyDelete
  3. Dear Sir,
    Nelco came up with excellent set of results. Also govt has given permission to wifi on Indian flights. How does this effect Nelco. Kindly provide ur input.

    ReplyDelete
    Replies
    1. Hi Dear, Results are great and as per expectations but i think future growth will be even faster as it has become lighter and focused after restructuring. Inflight connectivity is still a work in progress and needs to be watched keenly. But i feel for the time being Rural ATM's and connectivity will be the main growth driver. Further action over VSAT services for general population will happen after the launch of GSAT-11 which has been postponed by ISRO from May-18.

      Even BSNL is looking for lease agreement with Softbank backed Oneweb for Satellite internet in India to give tough competition to mobile players. I think Nelco will also create a place for itself.

      Delete
    2. Thanks sir for your inputs.

      Delete
  4. Dear Sir,
    Kindly provide your views on results of
    Abfrl and quick heal.
    Thanks
    Manoj

    ReplyDelete