Reduced EPS of TJL

ccsentha · 1 Reduced EPS of TJL Sat Nov 12, 2011 12:31 am

ccsentha

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What to do with TJL? will the earnings increase in future? shld we sell now and buy in 2 months time?

ccsentha · 2 Re: Reduced EPS of TJL Sat Nov 12, 2011 12:32 am

ccsentha

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It's quarter profits have come down by 50%(appprox), will it increase in next quarter?

rijayasooriya · 3 Re: Reduced EPS of TJL Sat Nov 12, 2011 12:53 am

rijayasooriya

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There is a significance increase in cost of sales(may be due to increase in cotton price in global market) and selling and adminstrative expenses.As a result of which net profit reduced.

ccsentha · 4 Re: Reduced EPS of TJL Sat Nov 12, 2011 12:57 am

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Could this be profitable in long run?

Slstock · 5 Re: Reduced EPS of TJL Sat Nov 12, 2011 3:06 am

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2nd Quarter revenue growth is 38% to 3.4 Billion.

Profit after Tax Down to Rs 0.13 from RS 0.23.

Why the profit loss ? :
i) When cotton prices are low as now ( in global Market) they have to reduce their selling prices.
ii) They have old stock of cotton bought at higher prices, but still selling products lower due to issue i).

Chabbi · 6 Re: Reduced EPS of TJL Sat Nov 12, 2011 4:44 pm

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slstock wrote:
2nd Quarter revenue growth is 38% to 3.4 Billion.

Profit after Tax Down to Rs 0.13 from RS 0.23.

Why the profit loss ? :
i) When cotton prices are low as now ( in global Market) they have to reduce their selling prices.
ii) They have old stock of cotton bought at higher prices, but still selling products lower due to issue i).

@ Slstock

wt is ur opinion of this stock ??? will this have great future (Long Term (More than 5 Years))

I am holding this stock only becoz Top 20 Major Holders Razz

Damn big & good heads are thr ....

Please give me ur view is it better to shift something else rather than holding this stock Smile

Juss Gimme ur Opinion

Slstock · 7 Re: Reduced EPS of TJL Sat Nov 12, 2011 5:07 pm

Slstock

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Chabbi wrote:

slstock wrote:
2nd Quarter revenue growth is 38% to 3.4 Billion.

Profit after Tax Down to Rs 0.13 from RS 0.23.

Why the profit loss ? :
i) When cotton prices are low as now ( in global Market) they have to reduce their selling prices.
ii) They have old stock of cotton bought at higher prices, but still selling products lower due to issue i).

@ Slstock

wt is ur opinion of this stock ??? will this have great future (Long Term (More than 5 Years))

I am holding this stock only becoz Top 20 Major Holders Damn big & good heads are thr ....

Please give me ur view is it better to shift something else rather than holding this stock Juss Gimme ur Opinion

If you going 5 years we don;t have to worry about short term effects of TJL right? TJL profit margins will depend mostly on cotton prices and higher revenues. Due to its exposure and clients TJL market share/revenue should be growing with the coming years. The IPO money should be utilized for high quality and expansion. Only concern is the cotton prices effect. But TJL is backed by a International partner and Brandix . Hence we can expect added management benefits.

Right now it is nearly discounted 30% from IPO price. We know CSE reacts to QoQ profits also not overall growth. So Short term, the share can dip further is the market remain bad.

These lower priced IPO have a chance of giving multi baggers if the growth can be sustained. What I would do for any share is , if plan to go for 5 years I would check every now and then to see its growth direction. if I find irregularities or company going down the drain I would sell. But not for 1 off quarter.

But I have faith in TJL. But I do not hold TJL as yet as I find far too many attractive counters which I am commited to.

pathfinder · 8 Re: Reduced EPS of TJL Sat Nov 12, 2011 5:20 pm

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slstock wrote:

But I have faith in TJL. But I do not hold TJL as yet as I find far too many attractive counters which I am commited to.

could you please tell us what are those attractive counters?

Slstock · 9 Re: Reduced EPS of TJL Sat Nov 12, 2011 5:45 pm

Slstock

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watch dog wrote:

slstock wrote:

But I have faith in TJL. But I do not hold TJL as yet as I find far too many attractive counters which I am commited to.

could you please tell us what are those attractive counters?

Watchdog, due to promotion issue I am not going to list them one by one. But time to time I have commented on what I find attractive.

In summary look at mainly
a) Banking/Finance sector.
b) some manufacting/construction sector companies
to start with .

Also 2 shares in Motor sector is undervalued greatly. Forward PEs under 6. But motor sector can have impacts from budget if you are concerned short term. If long term , with a growing economy ( if we belivee) there should be overall more demand for cars/mid range vehicles. The usual upgrade of status is from a motor cycle to Car ;-)

Overall see the ones with PE of 8-10 and decent management. Possible good PEGs also.
Also best to identify atleast 1 or 2 low cost counters( less than Rs 10) if you think long term. These can give multi baggers.