Vaibhav Global expects to achieve 15-20 percent volume growth in the next few years, says CMD Sunil Agrawal. High volume of trade has been observed in the stock recently. Speaking to CNBC-TV18, Agrawal says the promoter has not sold shares in the last few days.
“On contrary, in last one week promoter has bought a good chunk of shares from market seeing the value that the stock offers,” he adds.
The shares pledged by the promoter is less than 2 percent, Agrawal clarifies.Below is verbatim transcript of the interview:
Q: There is something that is worrying the market, are the promoters under any margin pressure? Is that what is being reflected by this acute pressure on the stock?
A: Promoters are not selling at all. On contrary, in last one week promoter has bought a good chunk of shares from market seeing the value that the stock offers. About the FIIs, last week we know the data then we do not know if FIIs have sold or not but we have seen that the market has traded a lot of stocks and who they are, we do not know yet.
We will know next Monday when the report comes in. But in the meantime, our focus is on executing the opportunity that Vaibhav has. We are into two largest markets in the world and the market size available to us is very large almost USD 20 billion market size. Therefore, we are just about one percent of the market share and a lot of potential for us.
Q: The market is still concerned. How much promoter shareholding is pledged, maybe that could be one issue?
A: Pledging is less than 2 percent and pledging is for that company - the working capital loans that company has, it was pledged many years ago and that just continues and it is just around 2 percent. There is no pressure or no risk to that pledge.
Q: What kind of volume growth projections do you have in the next one-two years because the previous quarter you have only done 8 percent?
A: In medium-term to long-term, we expect to grow anywhere from 15-20 percent. So we treat ourselves as a start-up business. Although we have done Rs 1,300 crore last year but from the market size perspective, we are just a start-up.
On the retail side of the business which is a long established player in the US and the UK, we have been there only for 6-7 years. So, we have started from the retail point of view.
Seeing that potential of large market size, we are just starting, so we are outsourcing the call centre, buying the new software platforms and during that process, maybe some plateauing of the revenues in certain quarter but we still focus on long-term opportunity that Vaibhav has which I strongly believe is between 15 percent and 20 percent.
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