Evaluating company on the basis of Warren Buffets four tenets

Business Tenets
The Kwality Dairy Indusrtrys business is simple. They are into the production and selling of dairy products like mik powder, ghee, instant dairy creamer, paneer curd, buttermilk etc. The company is performing well over the past few years which is evident from the figures mentioned below. It has a constant operating history.

Year 2009 2010 2011 2012 2013

Revenue 582.80 1054.12 1608.04 2394.63 3692.29

Net Profit 9.38 17.65 45.94 90.99 95.53

Milk, Curd, ghee, buttermilk are common in the diet of a common man in India. Also India is the largest producer and consumer of milk. So I believe the company has a long term prospects and company will do in the future.

Management Tenets Mr Sanjay Dhingra is the chairman and Managing Director of the company. He has rich experience of about two decades in activities like Manufacturing, trading and International marketing in the FMCG sector, which may help in the profitability of the business. Under his able leadership, company has established itself as a dominant player in the industry. He was felicitated by Pranab Mukherji, the then Finance Minister for his contribution in Dairy sector. The company has been keen in following corporate governance policy. The management of the company is practicing transparency, accountability, values and ethics when it comes to doing business.

Financial Tenets The Return on Equity is standing average at 13% and there is debt of 107.55 crores as on 31st March 2013. Value Tenets The book value of the share is less than the market value. So it is ideal to purchase.