Had done a note on Godfrey
Phillips earlier
Some developments have taken place since then:
1)
Rabale , Navi Mumbai plant is now completely operational. The plant is built
on a 44,000 sq metres ( approx 11 acre ) plot with a 21,500 sq metre factory
buildingThe plant has been built on a high technology platform with maximum
automation. The Technology tripod incorporates three major new technologies.
These correspond to the three main areas of production: the primary
manufacturing which prepares the cured tobacco leaf for production, the
secondary manufacturing which involves cigarette making and packing, and the
warehouse and despatch area. The plant won’t require more than 100 workers.
2)
236 unionized staff and workmen attached to its plant
at Andheri, Mumbai, opted for the VRS announced by the company. The financial outlay
on this account amounted to Rs. 35 crores approx and has been accounted for in
the June 2013 P&L. Further, the production facilities at its plant at
Andheri, Mumbai have been largely
re-located to the new plant at Rabale.
3)
Registered office has been shifted from Andheri to Lalbaug,
Mumbai
4)
The company has been accounting for exchange loss on
its Forex loan on a consistent basis and we may see some more of that in the
current quarter too.
5)
June quarter
saw a good scale up in revenue though profitability was affected due to VRS
& forex loss provision
Management pedigree is mediocre at best . Notwithstanding the same, going
ahead the benefits from geographical expansion
and right sizing should be substantial.
EV is about 2800 cr @ cmp of Rs.2700.At the time of writing this report, the author /his family have an investment interest in the stock mentioned above. Under no circumstance does the information in this report represent a recommendation to buy or sell the above-mentioned stock. This report has been prepared and issued on the basis of publicly available information, internally developed data & other sources believed to be reliable. This is just a suggestion solely for information purposes and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Readers using the information contained herein are solely responsible for their actions and are advised to satisfy themselves before making any investments.
