Tuesday 1 December 2015

Manugraph India Ltd.


Possible turnaround candidate. Medium to long term investors can look into it.

(Disc. Invested)

2 comments:

  1. For the last one decade there has been no significant business model change and growth. Its de-grown form 530cr Assets company to 200cr company now. I am a bit sceptical on its assets and holdings too. The last quarter may be an aberration from the fact that over 10yrs what it could not do, can it do in a time when futuristic tech. is replacing printing and machines like this. The promoter holding is also around 57%, which is kinda odd.

    The management in the Annual report sounded foolish saying that it wants to contain its losses and start making adjustments financially rather than tackling it via operations. They themselves feel that they cant turnaround the US operations in the notes. The tone after so many losses feels that it is headed for a natural yet painful gradual death. Why are you looking at this at all?

    Disc: I am invested too!

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    Replies
    1. Two important aspects in the business are 1. Capture market share and sustain it 2. Grow with volume. Company is significantly investing in technological solutions and R&D and that gives company higher edge on competitors. Further, company is having major market share and leader in its field. Promoters are investor friendly. They also recently increase stake and modernization market has huge opportunity available for Manugraph.

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