This is a commodity business and for us to take this business seriously they should grow topline at a very high rate.

We should dig deeper to find out if there is a moat.All they seem to be saying is that they have an integrated facility for toothpaste and toothbrush and they operate from himachal which is has some fiscal benefits.

I think they were just starting out then and sold to retails like Subhishka,Spencers etc which were going through a tough time.Now they have entered in to a long term contract with P&G(for Tide or Arial)which seems to have given them some traction.

Margins - Their OPM and GPM has always been in the 15-20% range.Is there a moat?NPM has fluctuated - may be because of higher depreciation on lower profits in 09.

Either way,not a business which will let you sleep well.

Originally posted by srisaurabh2000 Probably Colgate and Amar Remedies would be a better play. The absense of brand and no intention of pursuing that is a disadvantage for JHS. Dental Spa expansion also may not be an easy franchise.Amar Remedies has a brand and also does mfg for other folks. Though they also carry a baggage with high debt.

I think their business is more of a service to oral sector rather than direct marketing or product company unlike colgate or Amar rem.The branded companies sell their manuf. products in the market as their own brand.As sumone pointed out earlier in the forum its a proxy for FMCG.

I read sumwhere they almost have a monopoly in oral products with all big brands as their clients.I will try to find the link again.

prabhakar ji
if you are looking for some upcoming consumer play
look at Bajaj Corp
at FY12 P/E of 15 with a leading brand
exceptionally high ROE
as well as it is going to expand its product portfolio

it would take JHS Svendgaard exceptional skill, large amount of investment and above all exceptional luck to morph from a contract manufacturer to a brand owner