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TTK Prestige - Analysis of 2010 Annual Report

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Annual reports - Reading, Understanding and Discussing.
Forum Discription: Here we can discuss individual company Annual Reports. The idea is to make Annual Report reading easier and comfortable for the Non Finance People at TED
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2824
Printed Date: 26/Jun/2024 at 2:24pm


Topic: TTK Prestige - Analysis of 2010 Annual Report
Posted By: basant
Subject: TTK Prestige - Analysis of 2010 Annual Report
Date Posted: 14/Jun/2010 at 11:18am
Here is my quick analysis of the TTK Prstige's Annual Report for Fy10!

Business:

1)  From the Directors report there seems to have been a slew of new product launches but the key aspect to check out would be the kind of difference these products make to the topline. Sometimes there are minor improvements in existing products that make their way into their Annual Report but do not impact the topline as much as it appears at first glance.

2)    The company indicates that the share of organized brands is slightly more then 50% but that has been the case for a few years now. I wonder why the share of Hawkins and TTK as part of the industry exposure is constant if they are collectively growing at more then the industry. Or is it that the industry size is totally unknown and is an offshoot of mere conjecture. I am more in favor of the latter then the former. Whenever there is a big unorganized element present the total market size become that much more difficult to construct.

3)    The company writes that the threat to the domestic market continues from the unorganized markets and the regional brands because of their low unviable pricing strategy. But unviable pricing strategies are short term events in the long run companies that follow them will go bankrupt so that is not something to worry about but I would have liked the company to comment on what they feel would be the impact of GST. They should have provided their version of competitiveness of the organized players in the post single GST environment.

4) Sales Mix
                               Fy09    Fy10
Pressure Cooker      54%    47%
Cookware                15%    17%
Gas Stoves               09%    12%
Kitchen appliances   17%    20%
Others                      05%    04%

a) Clearly the big volume driver isn’t Pressure Cooker which grew by only 12% in Value terms. In case of volumes it grew at 15.58% implying that discounts were higher and pricing was lower and negatively impacted.

b)   For Cookware the volumes grew at 27% and value by 37%

c)    For Gas Stoves the volumes grew at 13% and value at 46%

d)    For Kitchen appliances the volumes grew at 88% and value at 53%

These data suggest that the company does enjoy pricing power except in case of  Cookware and Gas Stoves and that too one has to see whether the products were the same as sold as last year or improved innovated appliances being sold at higher rates have increased per unit selling price.


Financial Analysis

1)     There has been an all-round margin expansion led by lower raw materials (2%), and higher volumes have resulted in lower operating costs (3.6%).

2)    The company writes that free cash flow has been generated because of better inventory and debtor management which is INCORRECT. The debtors and inventory have grown at 23% and 22% respectively whereas sales and Cost of Goods sold have increased by 24% and 16% respectively.

3)   I will state below the reason for the free cash flow which for some reason the company has omitted to indicate and explain.

4)   The discussion of  Prestige Kitchen Boutique and Smart Kitchens network should have been indicated by value because in the absence of that one cannot make out whether the numbers are significant or not. On the face of it increasing Kitchen Boutique to 9 from 2 stores is immaterial in the overall context of things.

Capex: Last year the company had underutilized capacity in Cookers (55%) and Cookware (30%). Yet while production increased 18% and 26% additional capacity was set up for Cookers (20%) and Cookware 11%. Why would you set up new capacity when the existing is not used or if there is a change in product mix and the collective caption is cookers then they should mention it. Maybe this explains why their RoCE at 61% is lower to their peer group company (Hawkins).

The increase in capital employed at 35% is lower then the increase in sales at 26%.

Not a good sign unless they are investing for the future but when you have unutilized capacities why invest for the future? I guess they invested in Uuttaranchal for tax breaks but if the RoCE for investors were better in their exiting capacity without tax breaks I would have opted for the latter.

Cash Flow:  The big increase in operating cash flow has come in the back of increase in Sundry creditors. It appears that the company has outsourced more of its work to third party manufacturers and hence the big increase in Creditors. But if you strip out the Sundry Creditors (Rs 29.56 crores) the increase in Operating cash flow at 18.83 crores to Rs 61.65 crores from Rs 42.83 crores in Fy09 evaporates and the company has done worse off in terms of operating cash flow.

Getting cash from Sundry creditors by outsourcing is a one time event you can do it for a couple of years and then that will have to stop so I have not been too enthused by their cash flow statement.

The total fixed assets is around Rs 40 crores and surprisingly the value of Buildings (Rs 14.23 crores) is as much as the Value of Plant and Machinery (Rs 14.22 crores). Value of Buildings increased by around 40% for the current year whereas Plant increased at 18%. Not sure why?

The Cash, Investments and loans in hand are Rs 43 crores enough to create another TTK (Total Capital Employed is Rs 116 crores as on date) with debt from Bank. Why then is it that the company chooses to hold cash and not distribute it amongst the shareholders?

The Company has paid off its loans and become almost debt free. (good sign)

Properties and Investment: Why a company that generates free cash flow and is sitting pretty on its business competitiveness wants to go in for rental income? They should get the money out and distribute it amongst the shareholders rather then go in for JVs and agreements. Investments in Property is always a grey area and instead of trying to seek security for their main business by focusing on rental income they should raise the cash and a) Either expand operations in the non cooker segment or b) Just return the money back to the shareholders.  

Conclusion: The Company’s cash management is not as robust as it seems maybe the promoters are not focused on cash and Return ratios as they are on growth and somehow I get a feel that this company should be more transparent and focused in its operations then it actually is.

I still feel that slightly lower growth with focus on productivity and cash flows is a better way to play the sector and Hawkins (their Annual Report is still awaited) appears a better relative bet.

If there is any discrepancy in the above analysis please put it up.


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in


Replies:
Posted By: smartcat
Date Posted: 14/Jun/2010 at 11:38am
The growth in non-cooker segments is quite encouraging. - I like the concept of total kitchen solutions company.
 
What is their FY10 RoE - the annual report doesn't mention it I think (and I don't know how to use the assets minus liabilities RoE formula well). It was below 30% last year - but now, has it reached Hawkins levels?

Posted By: bihisello
Date Posted: 14/Jun/2010 at 11:44am
Thank you, Sir!

If you have nothing better to do (!!!), perhaps you could also look at TTK Healthcare to see if the management concerns you have are also reflected in that company? That may give a more complete idea of the group's quality. I'm sure some TED from Bungaluroo would grab an AR for you if you asked!

Posted By: prabhakarkudva
Date Posted: 15/Jun/2010 at 1:34pm
This is extremely helpful.

All i am looking for in the Hawkins AR is only a single line mention of an equal focus on non-cooker items like Futura.Something like "The demand for Futura is exceeding our ability to supply it" will do


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Take your chances and keep them in a box until a quieter time.

Posted By: adityancs
Date Posted: 15/Jun/2010 at 1:53pm
Very informative report at a glance

Posted By: karn
Date Posted: 15/Jun/2010 at 2:10pm
Thanks Mr. Basant

Posted By: subu76
Date Posted: 15/Jun/2010 at 2:42pm
Thank You Basant Sir.

Posted By: gyansr
Date Posted: 15/Jun/2010 at 4:46pm
Pretty good reaction to analysis. Stock is up 14% today.

Posted By: subu76
Date Posted: 15/Jun/2010 at 7:23pm

A couple of points:

ROE jumped from 26% to 42%.

On the company's finances vis a vis Hawkins:

It's the half full vs half empty argument.
TTK has a long way to go..the management has woken up to the possibilities only in 2007 and has continuously delivered on it. The results are evident.

Once managements adopt the return on capital funda they usually go places esp if the industry is a good one (unlike Textiles)

On pricing power:
When it comes to cookers neither Hawkins nor TTK enjoy a huge amount of pricing power. Till 2009 their prices per unit have tracked each other. That is the reason why Hawkins needs to come up with the Mother Mary price point (to prevent down trading). Offcourse, this is not an unique problem to this sector. Companies from Bajaj Elec to Agrotech all face this and have come out with products at lower price points.

Do gas stoves have pricing power? As an extremely satisfied customer i'd think so.

On dividends:

Could it have been more? Sure
Did management share the spoils? Yes, They just doubled the dividends. Again, the half full half empty argument holds...the dividend can go way way up from here.


On capex:
The new plant in Uttarakhand is related to domestic electrical applicances.
Yes it sure looks to be forward looking aiming to maximize profits. It requires expenses worth 10 cr of which 5-6 cr was spent this year. It's probaily not a big deal for a company which generates 60 cr of free cash.

Is the smart kitchen network successful?
I've personally seen them doing well. I've interacted with 2 different franchisee owners (one of them was a Hawkins employee earlier) and they were both extremely satisfied with the results and with the company.

On rental income
Not sure if this one is a big deal one way or the other. Will it use up all of management time if they just need to encash the cheques from the builder on a monthly basis? But, surely this is not the best of times to dispose off property.

Need to study more about the quality of the cash flow.

Between Hawkins and TTK....I personally feel TTK will grow their earnings way faster. if a company has a ROE of 42%, very little capex and a lot of free cash it can grow. Hawkins will probabily have a lot higher ROE but a lot of that will be returned to share holders.

Which company will give better share holder returns?
My guess is it will be the one which grows EPS the fastest.

Posted By: adityancs
Date Posted: 15/Jun/2010 at 8:23pm
Because of huge competition in cooker/cookware items, pricing power is  restricted for TTK and Hawkins. In Tamil Nadu alone, there are ten local branded cookware items apart from Butterfly, TTK and Hawkins.
I trust Hawkins management more than TTK management.

Posted By: prabhakarkudva
Date Posted: 15/Jun/2010 at 10:36pm
Basantji,

Could you please explain a little more about the Sundry debtor funda.What does the term mean and how is TTK able to show such a drastic increase?Did they start this outsourcing business from this year? And if they are outsourcing so much,what are they putting up the capacities for?Is this an item to look for other companies' cash flow statements too?I would've never figured this angle out.

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Take your chances and keep them in a box until a quieter time.

Posted By: CHINKI
Date Posted: 15/Jun/2010 at 10:49pm
1) From the Directors report there seems to have been a slew of new product launches but the key aspect to check out would be the kind of difference these products make to the topline. Sometimes there are minor improvements in existing products that make their way into their Annual Report but do not impact the topline as much as it appears at first glance.
It is true that no where there is any mention of the potential for the new products, but one thing for sure these are not just minor improvement of the old existing products. It is altogether on a different principle.
2) The company indicates that the share of organized brands is slightly more then 50% but that has been the case for a few years now.
Director was mentioning that the market for the Pressure Cookers has grown fron 500/600Cr to 1000Cr market
3) I would have liked the company to comment on what they feel would be the impact of GST. They should have provided their version of competitiveness of the organized players in the post single GST environment.
Very few companies know the effect of GST on their respective industries since Govt.is yet to clarify on so many issues.
4) a) Clearly the big volume driver isn’t Pressure Cooker which grew by only 12% in Value terms. In case of volumes it grew at 15.58% implying that discounts were higher and pricing was lower
Good observation. This needs to be checked up with the management during AGM but one thing for sure,they had one scheme or the other throughout the year. Most of the time it used to be like exchange of old cookers, cookwares or etc against any of the items available in the Prestige Smart Kitchen.

Looks like most of the time it is cooker from the house got replaced from the following data, hence more discount in the case of cookers.

Commission to Selling Agents : Rs. 153.53 Vs Rs.142.63

Discount : Rs.2960.33 Vs Rs.2414.74
(Rupees in Lakhs)
Financial Analysis:The debtors and inventory have grown at 23% and 22% respectively whereas sales and Cost of Goods sold have increased by 24% and 16% respectively.
Again good observation. But both Debtor days (43.3 Vs 44.36) and inventory days (84.58 Vs 80.8) are almost flat
4) The discussion of  Prestige Kitchen Boutique and Smart Kitchens network should have been indicated by value because in the absence of that one cannot make out whether the numbers are significant or not.
True. Needs more information like whether sales is growing in the old stores or not?.
On the face of it increasing Kitchen Boutique to 9 from 2 stores is immaterial in the overall context of things.
Looks like you have read it wrong. Other than Prestige Smart Kitchen, they have two more concepts viz, Prestige Kitchen Boutique (9 no.s) and Prestige Life Style (2 no.s). They have not added any new stores of these two formats during last year
Why would you set up new capacity when the existing is not used or if there is a change in product mix and the collective caption is cookers then they should mention it.
The new capacity has come up in Uttarakhand which enjoys Excise and Sales Tax benefits. Eventhough there is excess capacity at their current units in S.India which are located in Hosur & Coimbatore, it makes sense from the financial and logistics angle to have one unit in North to take care of the demand in North and West.
The increase in capital employed at 35% is lower then the increase in sales at 26%.
Money has already been invested but production started only after 20th of March. So it is too early to come to that conclusion.
Cash Flow:  The big increase in operating cash flow has come in the back of increase in Sundry creditors. It appears that the company has outsourced more of its work to third party manufacturers and hence the big increase in Creditors
Prestige has been outsourcing all their products except Cookers and Cookwares since long time. From current year, they would start manufacturing them at Uttarakhand plant. It is not that they have kept their capacities idle at their factories and outsourced from third party vendors like PSUs.

But if you strip out the Sundry Creditors (Rs 29.56 crores) the increase in Operating cash flow at 18.83 crores to Rs 61.65 crores from Rs 42.83 crores in Fy09 evaporates and the company has done worse off in terms of operating cash flow.
While it is true that cash flow gets affected due to capital investments but management claiming credit for nothing is not correct.

The total fixed assets is around Rs 40 crores and surprisingly the value of Buildings (Rs 14.23 crores) is as much as the Value of Plant and Machinery (Rs 14.22 crores). Value of Buildings increased by around 40% for the current year whereas Plant increased at 18%. Not sure why?
While this has to be checked with the management, but I feel ( which can be wrong) it can be either of the following two:

1) You have constructed civil structures at the new site, but bought machines may be only for half of that space
OR

2) They could have moved some machines from their old factories instead of procuring new one as the current plants are not running at the full capacity. It is also not expected to go up also as the North and west will get supplied from the new plant.

The Cash, Investments and loans in hand are Rs 43 crores enough to create another TTK (Total Capital Employed is Rs 116 crores as on date) with debt from Bank. Why then is it that the company chooses to hold cash and not distribute it amongst the shareholders?
Basantji, how did you get Rs.116Cr?? Is it Reserves + Loans?? Management is not revealing their plans. They say that nothing is planned as of now and if it is not used within a year or two, they may give it back to the shareholders
Properties and Investment: Why a company that generates free cash flow and is sitting pretty on its business competitiveness wants to go in for rental income?
The properties have not yet come and they are yet to get the approvals for their design. Nothing is decided about that whether to retain for rent or to sell off. So it is too early to make a comment on that issue.

I will not make any comments on the conclusion as it is for each individual to make his own assessment of the company.

My comments are based purely on my understanding of the Annual Reports as well as the information gathered during my interaction with the management.

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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO

Posted By: gyansr
Date Posted: 15/Jun/2010 at 11:09pm

deleted

Posted By: EquityInv
Date Posted: 15/Jun/2010 at 11:32pm
Thank you very much sir for analysis .. This will help me to understand on what to look in AR overall.

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One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers

Posted By: basant
Date Posted: 15/Jun/2010 at 8:01am
Originally posted by prabhakarkudva

Basantji,

a)Could you please explain a little more about the Sundry debtor funda.What does the term mean and how is TTK able to show such a drastic increase?

b)Did they start this outsourcing business from this year? And if they are outsourcing so much,what are they putting up the capacities for?

c)Is this an item to look for other companies' cash flow statements too?I would've never figured this angle out.


a)It is the Sundry Creditor Funds. Yes, they have started to oytsource in major way this year, once they start manufacturing on their own they will not have the benefit of getting cash into the system. If they do not manufacture then they will not get I-Tax benefit.

b)Not all companies are the same. Each company will have a unique aspect to be analysed.

c)But surely analysts looking at cash flow they should try and do a quality check!

Originally posted by EquityInv

Thank you very much sir for analysis .. This will help me to understand on what to look in AR overall.


I expect other TYED members to put up reports of other companies in this sormat or even in an improvised one. that will help us understand the AR better.



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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: prabhakarkudva
Date Posted: 16/Jun/2010 at 8:37am
Basantji,

Some doubts,pardon me if they are stupid.Just trying to get a hang of accounting.
I was just reading up about Sundry Creditors.So here the idea is that you are just postponing paying the money and hence increasing your cash flow.If this is the case the money needs to paid out sometime in the future.Hence should it really be classified as free cash? Also logically shouldn't this be a part of cash flow from financing?



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Take your chances and keep them in a box until a quieter time.

Posted By: basant
Date Posted: 16/Jun/2010 at 9:28am
It is free because if yo pay them off you can get more creditors by that time so if yo have that cycle where you pay Rs 100 after getting another Rs 100 as credit it is free.

But if you can't do that jig then it will still be a part of free but one has to take another look.

Originally posted by prabhakarkudva

Basantji,

Some doubts,pardon me if they are stupid.Just trying to get a hang of accounting.
I was just reading up about Sundry Creditors.So here the idea is that you are just postponing paying the money and hence increasing your cash flow.If this is the case the money needs to paid out sometime in the future.Hence should it really be classified as free cash? Also logically shouldn't this be a part of cash flow from financing?





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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: vinvestor2010
Date Posted: 20/Jun/2010 at 11:15pm
Hi I just had a query?. Their volume growth in P Cookers is higher than their value growth. Plus they are expanding capacity.
Does it mean that the firm is planning a sort of price discounting war with Hawkins in the cooker market, by flooding the market with cookers?
 

Posted By: basant
Date Posted: 20/Jun/2010 at 6:38am
For that we will have need to wait for the Hawkins AR. But to my knowledge Hawkins does not discount its products to sell more.

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: Shreyas
Date Posted: 23/Jun/2010 at 1:25pm
An exhaustive analysis. Thank You

Posted By: hawakeye
Date Posted: 08/Jul/2010 at 12:39pm
Clap bravo. basanthi, chinki, subu. Thank you for sharing the excellant analysis

Posted By: hawakeye
Date Posted: 08/Jul/2010 at 12:40pm
oops. excuse  me for the typho. Basanthji

Posted By: basant
Date Posted: 08/Jul/2010 at 1:01pm
Originally posted by hawakeye

Clap bravo. basanthi, chinki, subu. Thank you for sharing the excellant analysis


Expect you all to do it for the other companies alsoCry


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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: jsriram
Date Posted: 17/Aug/2010 at 12:44pm
Basant
 
For a quick report - very comprehensive analysis. Thanks
 
 
Sriram

Posted By: adityancs
Date Posted: 12/Sep/2010 at 12:17pm
It is gathered that TTK Prestige is also aggressive and likely to present a good II qtr result

Posted By: subu76
Date Posted: 12/Sep/2010 at 2:07pm
Yup...I think it's likely to be a sizzling number.

Posted By: adityancs
Date Posted: 12/Sep/2010 at 9:06pm
Normally Result comparison is made with Hawkins only..

Posted By: subu76
Date Posted: 12/Sep/2010 at 10:06pm
I think the market has already factored that TTK will show better results than Hawkins.

Posted By: studentoflife
Date Posted: 19/Sep/2010 at 12:11pm
CONS
TTK prestige has a dubious distinction of making an open offer to shareholders at a price which was peanuts.
TTK prestige has diversified into a sector which is NOT their core competence.That is Kitchen interior design.Also real estate to a minor extent.
TTK prestige was once almost bankrupt.


PROS

TTK prestige is VERY reputed brand in southern part of India.
It has a MUCH wider range of products than the nearest competitor Hawkins.
The stock is still UNDERVALUED.
The market is huge and the organized sector has still only touched a MINOR part of it. Please we need to consider the ratio of ACTUAL GROWTH /POTENTIAL GROWTH.


Points to be wary off

The bottom line of the company is growing at a higher rate than the top line.If this bottom line growth is too consistent then we better make a very accurate scrutiny of the balance sheet.

I suppose that if Charlie Munger or Warren Buffet had the choice to choose between TTK prestige and Hawkins to invest,they would have bought Hawkins.

I am invested in TTK prestige .Also I have NOT invested in Hawkins.




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First step towards learning is the realization that you do not know anything.

Posted By: subu76
Date Posted: 20/Sep/2010 at 1:33pm
Originally posted by studentoflife


TTK prestige has diversified into a sector which is NOT their core competence.That is Kitchen interior design.Also real estate to a minor extent.
 
BTW this is indeed a big opportunity...Atleast that is what i read in some annual reports like that of Whirlpool/
 
However, Not sure if too much cash has been plonked down this road.  Their chimneys do seem to be selling quite a bit.... I think this might be more of a branding based sales approach.
 
Originally posted by studentoflife

TTK prestige was once almost bankrupt.
 
You can check even Hawkins was in a terrible shape at that time.

Posted By: subu76
Date Posted: 20/Sep/2010 at 2:09pm
BTW quite a few puchases by WB......Goldman/Petro China/Salomon Bros/US Air have been quite controversial.....
 
He did buy wheat mills in Korea (whose name he can't pronounce) and various other companies about which he had not heard before...presumably because of the outstanding economics of the business.

Posted By: chimak10
Date Posted: 20/Sep/2010 at 2:52pm
Subu what is your view about the whole raw material saga and talk about mean revision.


Posted By: subu76
Date Posted: 20/Sep/2010 at 3:28pm
1. Personally one point i'm confused about is what Hawkins means by Others in the Raw Material usage section. If i ignore that confusion I think for Hawkins the point is bang on......Though i did not get your point about top line growth on that thread.   
 
2. But the other point to consider is that do we have another 4-5% yield company which has the same quality as hawkins.
 
I don't find even one which is remotely close in the entire market.
 

Posted By: KACHAM
Date Posted: 20/Sep/2010 at 7:01pm
Originally posted by subu76

1. Personally one point i'm confused about is what Hawkins means by Others in the Raw Material usage section. If i ignore that confusion I think for Hawkins the point is bang on......Though i did not get your point about top line growth on that thread.   
 
2. But the other point to consider is that do we have another 4-5% yield company which has the same quality as hawkins.
 
I don't find even one which is remotely close in the entire market.
 
 
How abt Castrol?


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Jai Telangana, Jai Jai Telangana

Posted By: subu76
Date Posted: 20/Sep/2010 at 7:17pm
What is Castrol's non special dividend yield?

Posted By: nav_1996
Date Posted: 20/Sep/2010 at 8:16pm
Castrol should match last year's special div this year. Last year it was 12.5/share (adjusted for bonus). They have already paid 7/share as interim div. They should definitely pay about 5/share as final div. But also look at the PE. Growth is captured in PE. But it is likely to hold in corrections. It is most likely to have time corrction (holding same value for 2-3 Qs) rather than value correction.

Posted By: subu76
Date Posted: 20/Sep/2010 at 9:59am
Thanks for clarifying. Might have been a good idea for the company to have not called it out as a "special" dividend then....

Posted By: nav_1996
Date Posted: 21/Sep/2010 at 1:51pm
They want to play safe

Posted By: chimak10
Date Posted: 21/Sep/2010 at 7:23pm
Q: Can you give us some sense of the numbers of growth you saw and the growth you will see in terms of volumes of sales, you have seen a 30% compounded annual growth over the last 2-3 years and what do you see from hereon, how much better will FY11 be over FY10 and likewise the next two-three years for which you can see visibility?

A: A 30% compounded growth rate is by no means small on a continuous basis. As you rightly said we have done that in last two years, we will continue to be planning to do that, I am pretty sure in FY11 we will scale the 30% again. We are already planning for FY12 to see how to repeat it and our objective is to try and grow between 25% and 30% compounded in the next decade.


If they can do it how many baggers is this. Almost 99% of stories end in 5 years and few like INFY create humongous wealth

Posted By: nav_1996
Date Posted: 21/Sep/2010 at 8:10pm
Someone claimimg to grow at 25-30% for a decade. You have to take it pinch of salt. Or person may be missing the effect of compounding. At 25% it will be 9 times and at 30% it will be more than 13 times.

Posted By: Catalyst
Date Posted: 21/Sep/2010 at 10:20am
Agreed, that one should take it with a pich of salt, but there is no need to be too cynical about these growth rates, as many companies in India have done better than this and many companies would do even better than this, thats how the mid-caps become large caps.

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What’s Euphoria, think of it as obscenity. Though its probably impossible to formulate a test for Obscenity but you know when you see it.

Posted By: chimak10
Date Posted: 21/Sep/2010 at 10:29am
The quote is from company CEO.



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