tag:blogger.com,1999:blog-735209523627178736.post2412193803358259956..comments2024-01-22T16:29:52.183+05:30Comments on Value Investing: An Intutive Approach to Investing: Cera Sanitaryware: Prospective steady compounderDhwanilhttp://www.blogger.com/profile/02537043667425952923noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-735209523627178736.post-11828351549713209562011-12-08T20:35:37.144+05:302011-12-08T20:35:37.144+05:30Thank you for your response. I agree to your point...Thank you for your response. I agree to your points that it is not alarming but definitely something to watch in the future. <br />My second question is regarding gross Fixed Assets. Its been going down as a % of total assets from 60% in 2005 to 44% in 2011.Gopalnoreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-91655857874766089192011-12-08T14:33:16.322+05:302011-12-08T14:33:16.322+05:30Thanks Gopal for your compliments.
Regarding your...Thanks Gopal for your compliments.<br /><br />Regarding your first question, I do agree that inventory has grown faster than sales, however the differntial in growth is not alarming (sales growth 28% versus inventory growth of 40%). My guess for such increase is due to company's focus on increasing distribution network and lots of product launches. In addition to that their Faucetware products were launched in last 4 months of Fy 10-11 and hence may not be selling as fast as other prducts leading to higher inventory.<br /><br />Regarding cash flow from operations, if you look at the cash flow statement, cash flow from operations is lagging NP because of working capital changes.So increase in invetory has direct impact here. Moreover their receivables have increased substantially, while payables have gone down. I think one should keep focus on W/C side in coming quarters and years to make sure that company is managing w/c effectively.<br /><br />I am not too sure about your second question. can you please elaborate? <br /><br />Regards<br />DhwanilDhwanilhttps://www.blogger.com/profile/02537043667425952923noreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-74347088563582901732011-12-08T01:40:04.424+05:302011-12-08T01:40:04.424+05:30Nice writeup ! I read the reports and had a few qu...Nice writeup ! I read the reports and had a few questions. Are you concerned with(in 2011) <br /><br />1) inventory growing faster than sales ?<br />2) PPE declining as % of total assets ?<br />3) CFFO lagging Net incomeGopalnoreply@blogger.comtag:blogger.com,1999:blog-735209523627178736.post-37238218106186998992011-12-07T10:35:18.613+05:302011-12-07T10:35:18.613+05:30Though I am still not Cera holder but I think it i...Though I am still not Cera holder but I think it is good buy.SPDAnonymousnoreply@blogger.com