What drew me to this company was it's above average promoter holding.
Promoters hold around 90% of the stock which is a huge positive for small investors.
Looking at more numbers, I can see Jolly Boards is quoting at 1.2 times book value which is juicy enough.
One more significant number is the debt-equity ratio which is almost nil.
I like debt free companies. There is nothing much to loose in a debt free companies since they are stronger in bear markets.
Now coming to return on their long term funds, I can see their last 5 years long term returns as :
Mar'11 Mar'10 Mar'09 Mar'08 Mar'07
25.63 70.35 101.98 51.32 26.19
These are good, rather stellar results over last 5 years.
Now lets end this number game and go to their line of business.
Company deals mostly in soft boards and bitumen boards.
This is basically a coating given under the concrete cement in bridges/airports/construction to prevent it from cracking.
Most of their products are exported to the extent of 70%. They seem to have a large presence in Dubai and I can see in their website that they have quite few prestigious projects in Dubai. Back home, they seem to be south in Bangalore where they have projects in Bangalore metros and national highways.
I read the annual report and it says somewhere that there is no stiff competition in the market and they are the market leaders.
Anyways this a boring kind of business. I love boring businesses. The fact that promoters hold 90% of equity makes it even more boring.
I will try to speak to the management and update more on this counter later.
Disclosure: I am accumulating the stock.
Promoters hold around 90% of the stock which is a huge positive for small investors.
Looking at more numbers, I can see Jolly Boards is quoting at 1.2 times book value which is juicy enough.
One more significant number is the debt-equity ratio which is almost nil.
I like debt free companies. There is nothing much to loose in a debt free companies since they are stronger in bear markets.
Now coming to return on their long term funds, I can see their last 5 years long term returns as :
Mar'11 Mar'10 Mar'09 Mar'08 Mar'07
25.63 70.35 101.98 51.32 26.19
These are good, rather stellar results over last 5 years.
Now lets end this number game and go to their line of business.
Company deals mostly in soft boards and bitumen boards.
This is basically a coating given under the concrete cement in bridges/airports/construction to prevent it from cracking.
Most of their products are exported to the extent of 70%. They seem to have a large presence in Dubai and I can see in their website that they have quite few prestigious projects in Dubai. Back home, they seem to be south in Bangalore where they have projects in Bangalore metros and national highways.
I read the annual report and it says somewhere that there is no stiff competition in the market and they are the market leaders.
Anyways this a boring kind of business. I love boring businesses. The fact that promoters hold 90% of equity makes it even more boring.
I will try to speak to the management and update more on this counter later.
Disclosure: I am accumulating the stock.
Promoters hold 90% of Jollyboards, Do you think company might go for delisting because before 2013 all public companies the promoters should not have more than 75 % shareholding..
ReplyDeleteCould be the case, and if it happens it will be for the good of the company and shareholders.
ReplyDeleteLet us wait and watch.