Heard of this company some time back. I have started looking at it. This company is into Diamond and gold jewelry exports. It's main market is US . It is into designing jewelry, managing the logisitics etc . Some positives
- Good ROE
- Very low fixed assets
- moderate WCAP requirement. Mainly in the Raw material inventory
- 10 % plus Net margins
- No debt
- 40 Rs / share of cash on the balance sheet
Some points which i need to figure
- what is the nature of the 'investments' in the balance sheet.
- what are the long term plans of the company
- nature of competition ?
- How good is the management. The company seems to have good Fresh cash flow. Other than some captial required for WCAP , the FA requirements are very low. So most of the Net profit is free cash for the company. Need to figure out what the company would be doing with the cash.
The biggest pain however is that the company's website does not have their annual report or detail financial results. That is could be real dampener !!