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prabhakarkudva
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Quote prabhakarkudva Replybullet Topic: JHS Svendgaard:Play on India's oral care
    Posted: 01/Jan/2011 at 9:44am
India’s only integrated provider of oral healthcare products in the outsourced manufacturing domain, offering oral care products -- including toothbrushes, toothpaste and mouthwash -- to leading national and multinational brands. Svendgaard have among the highest installed manufacturing capacities in the toothbrushes segment with about 300 million units per annum.

They are seen as a preferred supplier of oral care products. JHS has already proved itself for its excellence in manufacturing and adherence to the best quality standards. This has ensured the principals who have sourced products from them continue to do so on a long-term basis and also increase the scope of their association with Svendgaard.

Businesses:
1.Private Labels in India (Highly customized offering for each client)
2.Export - Private labelling for Asian,African, Middle East, European and American markets.
3.Their own brands - This is interesting.The logic is whatever excess is left over from manufacturing private labels is sold as their own brand.

Capacity:
A lot of capacity was built during recession which till the last quarter was running at 40-50%.They are now ramping up to manufacture at 80%-90%.

ROE:
10-15% due to low asset turnover.Expected to improve to 25-30% over the next year.

Market Cap:
153 crores

Management:
First generation promoter.Survived the recession.Need to dig deeper.

Competitors:
Need to check.

Moat:
Need to check.


I don't own it,SBI MF does .Only some Sunday morning work for me.
Take your chances and keep them in a box until a quieter time.
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subu76
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Quote subu76 Replybullet Posted: 02/Jan/2011 at 12:36pm
This is a proxy consumer play...

I looked at this one following an article in Outlook Money about a fund manager in HSBC buying a significant stake.

At least in the public domain I could not find enough indications of an upcoming sales spike.....No one i asked knew about the brands displayed on their site

So i thought i'll check back after the 2011 annual report is out.
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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 02/Jan/2011 at 12:42pm
Check this-> http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=501974

I am not sure who the competitors are and what's the moat like in this business.
Take your chances and keep them in a box until a quieter time.
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srisaurabh2000
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Quote srisaurabh2000 Replybullet Posted: 02/Jan/2011 at 2:33pm
They also are doing detergents for P&G and hand santizers for Invectigard which is a US brand.
They have dental spa called T32 in Delhi.

The major issue is the promoter pledging which I think last was at ~ 87%. Also the interest payments are quiet high.
Subiksha/Spencers with whom they had tie-up have gone down which would have affected them.

On the positive side I guess their factory in Delhi was at a good priced real estate and moving their plant to HP would free this plant and good cash if they decide to sell that. However don't know the numbers here.

Given the debt and pledging it's difficult to build a long term conviction. It's a good business with very bad numbers.

Also haven't seen their FY10 AR which should have been out there by now.





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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 02/Jan/2011 at 2:40pm
Read this -> Makes interesting reading of how they survived the recession,the reason for all the above factors.

http://economictimes.indiatimes.com/features/financial-times/JHS-Svendgaard-ties-up-with-pharma-major-weathers-recession-deftly-/articleshow/4058804.cms

Take your chances and keep them in a box until a quieter time.
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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 02/Jan/2011 at 2:52pm
Their AR can be found here -> http://www.bseindia.com/bseplus/AnnualReport/532771/5327710310.pdf
Take your chances and keep them in a box until a quieter time.
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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 02/Jan/2011 at 3:05pm
Their AR is brilliant.Every aspect is explained in a crystal clear manner.
Take your chances and keep them in a box until a quieter time.
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joslinjose9
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Quote joslinjose9 Replybullet Posted: 02/Jan/2011 at 3:13pm
hi,wallmart and carefour are their clents
fear of lord is the beginning of wisdom
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