Revisiting Sanwaria Consumer - a FMCG company

Sanwaria Consumer is giving Lower Circuit recently. Management has come and declared that it has sold some stake to pare debt. Few are doubtful about it knowing in past SEBI has slapped fine to it for price manipulation. But many has appreciated it for giving bonus and dividend. Those who liked the new gesture has ignored its past and talked about its future.

Recently when Company is giving lower circuit due to market and sale of stake few again started telling something wrong with it. Read that dangerous article on Sanwaria Consumer here.
Problem for me is that I cannot say anything in that detail to you. I do not have data and knowledge and time for that. So, there is a risk.

I thought to give some more time to it. I see that CARE has rated it on July 27, 2017. This is not very old considering Sanwaria Consumer is giving good result like this before July 2017. So, whom to believe - CARE Rating agency or the blogger who talked about it! According to CARE rating, it is rice which is making much of the difference.

CARE rating link is given to you to decide on it. I think, we should give Sanwaria Consumer chance and stay invested. Final decision should be yours.

If your decision is to stay invested and you think that everything is good then it may be the chance to invest more. For high earning we need to catch opportunity at right time.

Sanwaria Consumer Website
My old posts on Sanwaria Consumer

Poona Dal and Oil - Can it gain due to edible oil import duty hike

Sanwaria Consumer has said that import duty hike on various edible oil is good for them. What about Poona Dal and Oil?

Poona Dal and Oil has low liquidity. This is a concern if you want to invest more than Rs 1-2 Lakh.

Food processing business is in limelight these days. India has strong requirement about it.

Poona Dal and Oil is not a pick after much investigation but just a quick pick. Check yourself.

Poona Dal and Oil is at Rs 70.

Our valuable brands and products
With the state of art refinery having capacity of 300 MT per day and with efforts of sound technical staff Employees and Workers who are able to create our own brand image of products in the market vis.

- HIRA Refined Sunflower SOYA OIL
- TIGER and SURAJ in Refined Soyabean OIL
- MOTI in RBD Palm OIL
- 111 super Palm Oil and,These products are mainly available in two main segments one Bulk Pack having pack size of 15kg, 15ltr in Tins and Jars
- Consumer Packs available in 500 ml Poly pack, 500 ml Bottle 1000 ml Poly pack and Bottles and 5 litres jar and in this segment our products are distributed through strong network of distributors in a state of Maharashtra and Neighboring state
- TIGER is our most popular and trusted brand in soyabean oil in various pack sizes 1 ltr and 500 ml poly pack and jar 2 ltr jars
- RBD palm Oil Is available in Brand name MOTI available 1,15 kg and 15 ltr
- 111- is a super refined palm oil which is specially manufactured in our refinery in short span of time it has gained brand image because of it quality this is sold in loose form along with refined soyabean oil in tankers
- The products which are well reputed in the market for their consistent good quality and competitive pricing. The brand name enjoys a premium in the markets and well known among the masses.

Recently Porinju Veliyath has bought BCL Industries.

Update: Read a recent article that import duty is not good for edible oil companies. Sanwaria may have different reason to tell that it has no effect on this. Sorry! Leave this stock. I have cautioned on low volatility. If you have small stake already and want to check next quarter result then you can take risk.

Great news for Sanwaria Consumer investors

Mentioned Sanwaria Consumer at Rs 8.85 which I have mentioned on Oct 6, 2017 on Facebook but blogged about it on Oct 8, 2017, this FMCG Food company is now trading at Rs 15.5.

BSE notification (dated 18 Oct, 2017) came for Sanwaria Consumer which is very healthy for all of us as that certify that we are at safe place. Few Foreign Portfolio Investors (FPI) has entered here.

BSE link

Another food company mentioned recently is Himalya International whose growth is not intact but I am hoping for that.

Update:
If I calculate the number of units bought in Sanwaria consumer then it comes to Rs 1.65 Cr roughly. ( I calculated 11 Lakh units roughly and multiplied by Rs 15)

This is not a big amount for FPI and it is not a big percentage of free float of Rs 319 Cr right now. But still four FPIs entry say something about the possibilities of this company and its current valuation. They may lap up more stocks in-case market gives them chance.

Sanwaria Consumer Ltd in packaged food

Sanwaria Consumer Ltd was called Sanwaria agro earlier. It is one of the largest integrated food processors in India and is engaged in the business of manufacturing and selling of Rice, edible oil and staple food products like Pulses, Sugar, Soya Chunks, Wheat Flour, Rice Flour, Salt, Suji, Maida, Besan, Daliya, Soya Meal etc.


Before more details come here, I request you to go to there website and check their products range.

Mentioned about it on Friday, 6th Oct here so that if investors want to buy then he can buy. It is going on UC from few days but it could be just a start of the journey.

Few highlights - Good and bad:

• Very High debt. D/E = 2.44
• Interest Coverage Ratio = 1.75
• Management quality is important factor but its management quality is not good as 2-3 times it got punished. Management is trying to win confidence. Declared dividend and bonus share in recent past.
• Result is coming very much better than earlier from Dec 2016. 
• Current valuation of PE = 10, it is still very cheap.
• At PE=10 for consumer stock, risk can be taken, I think.
• Working for Patanjali.

 CMP: Rs 8.85