Wednesday, January 15, 2014

LIBERTY SHOES - RESULT UPDATE

Liberty Shoes recently recommended @ Rs .112 ( Link HERE) reported an increase of 23 % in Sales and 82% increase in net profit in December quarter.Company's OPM also improved from 7.48 % to 8.36 %




Today stock closed @ Rs.147.75 a decline of Rs.8 from previous closing.In a recent interview ,company officials projected a turnover of Rs.500 for the full year.In the first 9 months ,company reported a sales of Rs.320 Cr and prima facie it is difficult to achieve the projected sales in full year.This may be the major reason for today's profit booking . But now company clarified that the reported numbers are only the standalone numbers and not considered the sales of its erstwhile subsidiary Liberty Retail Revolution ( Only recently this company merged with Liberty) and the sales of LRR will be accounted only from next quarter onwards in the stand alone result .Hence they are optimistic to reach the projected figures in the full year.
Even still the Rs.500 Cr figure seems  bit difficult to achieve in this FY , recommending to HOLD the stock for long term .

17 comments :

  1. Sir, LRR,s sales for the full year 2013 was Rs.59 cr .Considering previous records if it continuous with the same Rs. 15 cr will be added to Lsl's turnover.110+15 will make 125cr for Q4. So they may fall short with something between 50 to 55 cr.Restructuring would ensure that the
    company will own the brand/sub‐brands and the facilities and hence it would not require to pay the licence / franchise fees(Rs. 199.2 mn in FY13), which has boosted the net profits significantly.

    ReplyDelete
  2. quick question...why is liberty not paying any taxes ?

    ReplyDelete
    Replies
    1. Read Page No.22 of latest Annual Report under the head
      ' Statement of Contribution to Public Exchequer '

      Delete
  3. Dear Sir, After seeing the success of your recommendations I had bought Basant Agrotech during 2009-10 . But this stock has not performed after 3-4 year. Kindly express your views and suggest me whether I should sell or hold the stock.

    ReplyDelete
    Replies
    1. Dear Mr Garg
      It is always better to avoid telling unnecessary lies .I started to write this blog only in 2010 and recommended Basant agro only in 2012 .Then how you can see the success of my recommendations in 2009-10 and argue you bought Basant due to my recommendation in 2009-10 .?

      Delete
  4. Should we exit Caplin Point Lab it is falling every day, many investors had express concerns with management cheating the investors previously.

    Look like it is trap again for may investors.

    ReplyDelete
    Replies
    1. Could you please explain how management cheated investors previously ? .It made its IPO in 1995 @ FV and those got allotment and still holding the stock saw a high of Rs.150 + .Company distributed dividend as and when there is profit .In what sense you are saying they cheated its investors.? If your conviction is only based on the words of other investors better to do what others say ..

      Delete
    2. well said,
      friends we tend to forget that vp`s recommendations are not for quick manipulative profit, but profit based on conviction about the company, which certainly needs some patience and not few days of rapid ups and downs.

      Delete
  5. Sir
    Any new development on ROTO Pumps, it has shot from 80 to 150 within last quarter. I hold 300 shares. I need your opinion.

    Thanks

    Karthik

    ReplyDelete
    Replies
    1. Stock is not expensive based on fundamentals.

      Delete
  6. sir,
    whats your view on Suzlon at current levels to avg now?
    i know they have problems with working capital as you had indicated earler but is it good to add now slowly?

    thank you sir for your guidance.

    ReplyDelete
  7. VP Sir..

    DHFL which is not fundamentally as strong as IBULLS has shot up from 103 to 220 levels in 3 months where IBULLS is still languishing at pathetic levels. Last Year 2012 Dec/2013 Jan i bought IBULLS at avg price of 310 levels. Later it got converted to IBULLS Hosuing finance and still holding it. I have lot of conviction on this one as the sector offers potential and this one is trading at 10% dividend yeild and yet growing at 20% + per annum. But my conviction levels are getting hampered day by day as the price is not going up where as scripts not so good scripts like DHFL, Can fin etc are growing day by day. What would be your suggestion to an investor like me ... ? Hold them for long term or switch over to DHFL in the same sctor which is more or less at same PE but trading at less P/B and is growing consistently .. please advice.

    ReplyDelete
  8. VP is recommending companies based on Fundamental value, company's Future growth plan, current development etc and also advising readers to do their home work before investing on the stock. Nobody can comment for day to day quoting of the scrips and investors should take their own call for investment and holding period. VP's most of the Recommendations are sucessful if you have invested with conviction and patiance. VP should continue to do his Good work and ignore such immatured and impatience blog readers comments.VP, we are with you always. God Bless you.

    ReplyDelete
  9. Dear VP,
    Your view on Bajaj Corp? I feel company can give 20% compounded returns from these levels

    Regards,
    Pratul

    ReplyDelete

Followers

Tweet TopOfBlogs