HARI.N0000 ( HARISCHANDRA MILLS PLC )

Just let me show two nice examples of the business journey of two different countries.

SL. 1. Harischandra Mills
SK  2. Samsung

Both companies start as the same selling dry fish, noodles, and other groceries.

Mr. C.A. Harischandra founded the Company in 1943, Matara, Sri Lanka, with an initial capital of R.S. 25,000/- on a land area of 20 perches.

The first activities of the Company were the milling of rice, kurakkan and other grains. By 1952, the business had expanded into various other fields including the milling of coconut oil.

The business carried out by Mr. Harischandra was incorporated in Sri Lanka under the Companies Ordinance No. 51 of 1938 on the 9th day of January 1953.

In addition, being a pioneer industry in the south of the country, the Company became a pioneer in another field by allotting in 1959 forty percent of its shares to its employees.

In 1983 the Company was listed on the Colombo Stock Exchange.

The Company at present, is the market leader in the sales of noodles, coffee, kurakkan flour, ulundu flour and has an appreciable market share in rice flour, laundry bar soap and blue washing soap.

[You must be registered and logged in to see this link.]

[You must be registered and logged in to see this image.]

Samsung started in 1938 as a company selling dried Korean fish, vegetables and fruit to Manchuria and Beijing.
This is how Samsung looked like 74 years ago when they started.

2011 was a remarkable year for Sri Lanka. Even the revenue chart of Hari.N shows this difference prior to 2011 and post

[You must be registered and logged in to see this image.]

EPS was growing continuously

[You must be registered and logged in to see this image.]

Net Assets of the company

[You must be registered and logged in to see this image.]

Thanks YK.
Could not help wondering where, how, when and why did we fail?

When compared with other food and beverage company the performance is in par


[You must be registered and logged in to see this image.]

In the top twenty list No 1. , No 5 and No 18 belong to Dr. Senthilverl on two margin accounts and one individual

Somewhat similar situation is seen in HDFFC bank as well

කිත්සිරි ද සිල්වා wrote:Thanks YK.
Could not help wondering where, how, when and why did we fail?

One reason is lack of focus on manufacturing.

some 20 years after its foundation, the company switched to selling flour mills and confectionery machines, which was the fundamental turn of the company towards technology products.
Throughout the course of their early operation, Samsung invested in a clothing company, acquired a Swiss watch company and even negotiated acquisition of a Dutch aircraft maker Fokker, thereby showing interest in a variety of industries.
Still successful, today Samsung sells a very wide range of consumer electronics.

2015/16

Hari is a highly illiquid company.

[You must be registered and logged in to see this image.]

Even though Revenue has gone up PAT has comedown in this company of FMCG category

[You must be registered and logged in to see this image.]

When a company is highly illiquid its price is easy to remain at higher levels with higher PE ratios..

[You must be registered and logged in to see this image.]