Author Topic: HIRAT -- Hira Textile Mills  (Read 48441 times)

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Offline khi1990

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HIRAT -- Hira Textile Mills
« Reply #-1 on: August 23, 2011, 09:14:09 PM »
hira textile isnt is undervalued because its last full years EPS was 3.7 and this 3 quarter  of 2011 it has an eps of 3.6 last year it gave rs 1 dividend now its trading at rs 3
i wanted to knw whats the reason for this and i bought 20 000 of them at rs 4 what shall  i Do
« Last Edit: February 27, 2012, 08:57:37 PM by M&M »

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HIRAT -- Hira Textile Mills
« Reply #-1 on: August 23, 2011, 09:14:09 PM »

Offline M&M

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Re: HIRAT -- Hira Textile Mills
« on: August 23, 2011, 10:21:37 PM »
hira textile isnt is undervalued because its last full years EPS was 3.7 and this 3 quarter  of 2011 it has an eps of 3.6 last year it gave rs 1 dividend now its trading at rs 3
i wanted to knw whats the reason for this and i bought 20 000 of them at rs 4 what shall  i Do
perhaps stock prices are not strictly governed by "EPS" ..
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Offline fasee

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Re: HIRAT -- Hira Textile Mills
« Reply #1 on: August 23, 2011, 10:44:03 PM »
payout has a major role, as mere EPS w/o payout is counter productive. in addition, textile is one exception to EPS n P/E thingy....figures go wild..with eps higer than market price in many cases

not to mention volumes...which shows wheter exit is available w/o damge or not
« Last Edit: August 23, 2011, 10:45:44 PM by fasee »

Offline Poker Face

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Re: HIRAT -- Hira Textile Mills
« Reply #2 on: August 23, 2011, 10:56:23 PM »
HIRA TEXTILE KEY INDICATORS
The principal activity of the company is manufacturing and sale of yarn.

EPS
CY 2006 1.94
CY 2007 {0.87}
CY 2008 0.68
CY 2009 0.03
CY 2010 3.48
CY 2011 [9M] 3.76

Current Ratio: 0.92 {satisfactory}
Debt:Equity: 12:88 {good}
Total Debt to Total Assets: 5.55 {good 40% decline from CY 09 9.17}
Break up value: 18.34 {good}
Dividend Yield: 33% {assuming Re. 1/- dividend for CY 11}
Gross Profit margins range between 16% to 19% {satisfactory}
Mr. Muhammad Umar Virk holds 31% of the company and is chairman as well.

As per my view, HIRAT condition is satisfactory and you should hold it for long term. You have already got Re. 1/- of  your investment back. So, better hold it. Currently, yarn industry is in trouble because of inventory losses and expect same for HIRAT as well but things will improve insha Allah with the passage of time. But don't expect any improvement in price for next 6 months.
Second option is get rid of it if you are feeling uneasy as at Rs. 3/- you will be suffering minimum losses and you won't have to worry about it anymore.
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Offline Poker Face

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Re: HIRAT -- Hira Textile Mills
« Reply #3 on: August 23, 2011, 11:05:31 PM »
Share of profit from subsidiary, Hira Terry Mills, a towel manufacturing company, is also increasing with each passing year.
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Offline fasee

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Re: HIRAT -- Hira Textile Mills
« Reply #4 on: August 23, 2011, 11:07:48 PM »
last year was fabolous for yarn producers...showing even as hig as doubling profits...this year eps of all these might get a battering not only from investory loss but decrease in sales in rupee terms...lets see   :fingerscrossed1:

Offline fasee

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Re: HIRAT -- Hira Textile Mills
« Reply #5 on: August 23, 2011, 11:15:57 PM »
its stock in trade is growing...disturbing cash flows form operating activities this quarter same as correspoding lst yr qtr....balanced from combo of long term n short term borrowings....increasing financial costs

Offline Poker Face

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Re: HIRAT -- Hira Textile Mills
« Reply #6 on: August 23, 2011, 11:33:02 PM »
Yes, financial charges have increased by 19% but a handsome topline growth of 68% mainly because of high yarn rates easily offset the negative effect. The director says the company has procured raw material at good prices. It remains a secret that what 'good' really means. However, 2012 may be tough for HIRAT as financial charges may increase and GP margins may shrink. We can't forecast 2013 onwards.
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Offline khi1990

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Re: HIRAT -- Hira Textile Mills
« Reply #7 on: August 24, 2011, 12:39:02 AM »
i really appreciate the knowledge and feedback
i also wanted to know the reason why most of textile co including hirat and other textile .their prices are about the same as their eps . and i am planning to buy 15000 more of hirat around 3 is that a good investment for medium term?????
i also wanted some feedback on another share f.h.b.m(first habib bank modarba) it has a good rps for 3 quarters at rs 1.42 and a good dividend yield and its priced at rs 7

Offline Poker Face

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Re: HIRAT -- Hira Textile Mills
« Reply #8 on: August 24, 2011, 06:43:56 PM »
I don't think adding 15000 more shares of this company will be wise as you are already holding 20000 shares.
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Offline khi1990

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Re: HIRAT -- Hira Textile Mills
« Reply #9 on: September 26, 2011, 11:41:03 PM »
board meeting on 3 october i expect eps of around rs 4.75

Offline zahidinam

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Re: HIRAT -- Hira Textile Mills
« Reply #10 on: September 28, 2011, 06:56:26 AM »
board meeting on 3 october i expect eps of around rs 4.75
expected any dps,bouns?

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Re: HIRAT -- Hira Textile Mills
« Reply #11 on: September 28, 2011, 07:16:40 AM »
High probability of dividend in range of 1-1.25
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Offline investment.guru

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Re: HIRAT -- Hira Textile Mills
« Reply #12 on: September 28, 2011, 11:56:09 AM »
board meeting on 3 october i expect eps of around rs 4.75

bm 4 oct :rtfm:

Offline Abdul Qadir

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Re: HIRAT -- Hira Textile Mills
« Reply #13 on: September 28, 2011, 12:05:47 PM »
Company is too much dependent on short term finance which is acting as negative point.

Offline khi1990

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Re: HIRAT -- Hira Textile Mills
« Reply #14 on: September 28, 2011, 10:03:03 PM »
http://www.kse.com.pk/notices-updates/detail2.php?id=4&nid=027344

i expect rs 1 dividend and hope there's more waisay rs 1 div for a 3.5 rs company is good enough its more then 28% dividend return
i wanted advice from seniors shall i wait for bod meeting or shall i sell if it goes above rs 4 before announcement bear in mind i have been holding it for a long time and averaged at rs 3.9

Offline Ali Ahmed

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Re: HIRAT -- Hira Textile Mills
« Reply #15 on: September 28, 2011, 10:04:22 PM »
seniors pls advise if this script wil touch 4.75 by 3rd october before the BM just like last year or only if the dividend of atleast Re 1 is announced

Offline Poker Face

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Re: HIRAT -- Hira Textile Mills
« Reply #16 on: September 28, 2011, 10:20:14 PM »
Result will be disclosed on 04 Oct, 11 because meeting is at 02:30 pm.
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Offline khi1990

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Re: HIRAT -- Hira Textile Mills
« Reply #17 on: September 30, 2011, 10:46:38 PM »
what would u guys advice to sell hirat around rs 4.5 or hold it till after announcement

Offline Poker Face

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Re: HIRAT -- Hira Textile Mills
« Reply #18 on: September 30, 2011, 10:54:33 PM »
what would u guys advice to sell hirat around rs 4.5 or hold it till after announcement

HOLD is advised
I hope it may go more up with better dividends
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