Company is extending 6th
production line to cater export and downstream markets, this is clearly showing 27% increments in export revenue and it is stood Rs 2,708 Mn during last year. Positive investors see the potential of this company due to following factors.
01. 5.7% increments in the human capital, mainly due to the increase in number of employees.
02. Last two year FY 18 and 19 company has invested Rs 623 Mn and Rs 609 Mn in the CAPEX, Further First quarter of FY 2020 Company has invested Rs 364 Mn. The majority are capacity enhancement under WIP Rs 436 Mn
03. Company has freehold land in Ratmalana, this will be revalued near future, there will be a positive impact on NBV, further fair value and revaluation reserve accounted for over Rs 100 Mn.
04. Sanjaya Tiwari – Chairmen of the company purchased 1,114,116 Shares during last year, this is a clear indication for price escalation in the near future.
05. Export revenue double compared to FY 2015, Currency depreciation will help further to record higher revenue and unrealized gain from debtors. Presidential award from highest export in ceramic/porcelain and Glass based products.
06. Addressing the CSR and reputation risk through recycling and re-usable bottles, JKH is promoting Prima glass bottles.
07. Positive EPS and DPS, if a moderate investor can expect 5.5% - 7.5% dividend payout. That’s reasonable to keep this stock for long time. During FY 19 Rs 13 Mn unclaimed dividend write off.
08. Inventory movement is huge even though closing balances are continually increased, it is a very good sign of increasing the production in coming months, Inventory has increased by over 40% even after huge movements.
09. Receivable has reducing and payable are improving, this will help to maintain healthy working capital cycle, cash balance is not bad, since they are earning from FD also.
10. The exchange rate is we can expect positive since Srilanka has to go through a tough period in near future, especially Oil price increase and political uncertainty.
We can observe lots of good trading pattern, This is a bit of my view, you can do your own analysis, without going behind the manipulated stock. Especially new comes need to care about stock market behaviors in these days, so many stones becoming a Gem. Use your mind before you invest.
See you in another stock, If I see good in it.
No Trade Mark