SHRIRO HOLDINGS LIMITED - ASX: SHM

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ShareShack user name hidden until logged in June 27
Shriro smashed down today to $1.14 off low volume having risen so strongly and assuredly to $1.29 from $1.00 over the last few weeks- also off low volume!

Today’s fall was off no announcement.

The stock is priced on a p/e of around 8.0x at current price and a fully franked dividend of over 10%. Balance sheet is almost debt free.

The fundamentals therefore look very good and downside risk at current price is low.

Worth monitoring and waiting until it’s found a base as don’t want to catch a falling knife.
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ShareShack user name hidden until logged in May 24
Buy/ sell side on the screen is starting to look very weighted to the buy side for Shriro. Check out my earlier posts on Shriro over the past few days using the Search bar at the top for my thoughts on this one....Show more
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ShareShack user name hidden until logged in May 22
Shriro has been creamed over the past 2 days off the back of a trading update that has spooked the market.

I was going to buy 3 days ago off the back of research I had done which made it look like a perfect value investing play to me.

It was trading at $1.36 at the time, representing a p/e multiple of 9x, almost debt free, with a fully franked dividend of 11 cents- so a dividend yield of 8%.

Luckily I got distracted and didn’t buy, because the share price is now at $1.02!!

I just spoke with the CFO of the Company who confirmed what the update said- which is that their kitchen appliances business has faced challenges due to price competition.

However, it isn’t their most profitable business- their consumer products business is and its performance is weighted towards the second half of the year.

Also, the drop in EBITDA from kitchen appliances has been offset by an R&D claim and some tax savings, which means NPAT should be broadly in line with prior year.

The dividend should therefore still be the same, unless they decided to do a share buyback.

The company is now trading on a p/e of 6x and paying out a fully franked dividend of 11%- assuming it is unchanged.

It seems like a low risk no brainer to me (but it also did before so do your own research as always)

Check out my original post on this by searching for Shriro in the search bar at the top of the screen.
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ShareShack user name hidden until logged in May 18
I came across this stock, Shriro Holdings. It's involved in the distribution of kitchen appliances, fixtures and consumer products throughout Australia and New Zealand.

The company distributes and markets brands including Casio, Omega, and Everdure, among others, for products ranging from stoves and ovens, to watches and calculators.

It only has $2m of net debt, EBITDA of $24.7 million and profit after tax of $14.5 million for the year ending 31 Dec 17.

It is therefore highly profitable and easily able to service minimal debt.

It has a market capitalisation of only $130 million, translating into a p/e multiple of only 9.0x.

It paid a fully franked dividend of 11.0 cents per share in year ending 31 Dec 17, which represents a yield of 8.0% at the current share price of $1.37.

In my view, theres not much downside risk being priced at such a low earnings multiple, with a strong balance sheet and very attractive dividend.

It looks like the stock is not very liquid, with a quarter of the shares held by the major shareholder, so the price has the potential to be volatile.

However, this is more of an issue if its priced at a high multiple, not when its multiple is as low as Shriro's is.

The main headwinds to the business appear to be a downturn in the housing market, and therefore people renovating their kitchens less.

This is expected to result in earnings for the year ending 31 Dec 18 being lower than the prior year.

However, they have a great diversity of consumer products they're distributing and are expanding the sale of these into international markets, which could underpin future growth.

In my view, the stock is very compelling at current price levels, but interested in other peoples thoughts....

https://webbackend.shriro.com.au/images/upload/files/43rdxfw1pxn05y.pdf

https://webbackend.shriro.com.au/images/upload/files/SHRIRO%20AGM%20APRIL%2018%20PRESENTATION.PDF
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