Friday, November 20, 2009

Why so much inventories?

I was recently looking at the list of highest dividend paying companies and found an interesting company named Zodiac-JRD-MKJ which, according to the finished products list on moneycontrol, is a jeweler. The company's balance sheet for FY09 shows that the company had an inventory of INR 38.18 Crore and Net Current Assets of INR 43.09 Crore. This is surprising since the company's net sales in FY09 was INR 17.73 Crore. That means company is having inventory of 2 years and working capital is two times that of sales. The total market capitalization of the company is just INR 12.37 Crore.
Bookmark and Share

1 comment:

Madan Kumar said...

A good finding. I see no website for the company. Its earnings are very meager and thats why the market has depressed the stock. It is an amazing asset play though.

Do you mind finding some more details? (I cant find anything meaningful, and so I have mailed them directly asking them to mail me their balance sheet)

Related Posts with Thumbnails