 Good day fellow investors! I know you have been excitedly watching and waiting for Amira to publish financial results. End of July, the set July and they published the end of July, the last day of July like they do it every year. In this video I will analyze the earnings, see if they match expectations they do and see what to do with Amira in the future. So let's start immediately. I have received lots of comments. What do you think about this? What do you think about this? What do you think about this? Everybody is bombarding about small little things about Amira. All right, please show me a perfect company. So a company where everything is perfectly perfect. Show it to me and then bombard me with these tiny questions about this, this and this. Always look at a company as a whole and also we have to approach Amira as a whole. See the good things and the bad things. We'll discuss today both good and bad things. Approach it from risk reward perception and then see how good of an investment Amira actually is. Let's start from this perspective. Amira price earnings ratio with the new earnings is 7.38 as I'm filming this. SAP 500 price earnings ratio is 24.64. Indian top 50 companies on the Indian stock exchange 25.69. So Amira is three and a half times undervalued. And this is what we have to see. Is this valuation fair or not? Should Amira be priced higher or not? That's what I'm looking at. Not if Amira is a perfect company. I haven't yet found a perfect company. If you can point it out to me, please I'm waiting. The second thing we have to look at Amira is this is the period look at the Basmati prices they have been from 900 mostly 800 per tonne and then have started increasing from December. So the numbers that Amira just reported are still from subdued Basmati prices. You can see the latest up to already July 2017 Basmati prices. They are all above $1200 per tonne. Compare it to the 900th average of the previous period. We can expect Amira's revenue to be significantly higher when they report earnings for the first six months of fiscal year 2018 in November. So excellent outlook. What did the company do? This you can read revenue. I will focus on earnings per share of 0.84. I never look at adjusted earnings per share. 0.84, price earnings ratio of 7.38. Excellent net debt to adjusted EBITDA below 3, margin of 12.8. Then if we look at what the management said outlook, we expect both our revenue and margins to benefit from our fiscal 2017 pricing actions going forward. So in line with my previous video expectations, better margins, higher earnings, higher profits, everything will look much much better for Amira from now onwards. Although this doesn't look bad at all. Price earnings ratio of 7.8 doesn't look bad to me at all. What's also very important is that the company increased volumes in its core rice business. And if you increase volumes, when rice prices go up, you increase revenues significantly. So increased volumes offset year over year pricing for Basmati rice. Cash per share, 17 million, cash in line as the procurement season lasts from September to end March. So Amira always tries to buy as much inventory with all the cash available till the end of the year. So I would have liked cash to be at 1 million so that they spend also the 16 million to buy more rice, but okay. Revenue distribution, lower prices, Basmati prices in EMEA okay, Asia Pacific okay, North America triple digit growth. So the push that management did in 2016-15 and the last year to increase sales in North America is really paying back. This is a company growing 100% and more in North America. Excellent. Now the risks. I don't like delusion. However, Karen Chanana, the CEO, gave a loan of 3 million to the company and then converted it to stocks at the price of $7.20, which is $1 higher than what Amira is trading. Delusion yes, but actual shareholders that now hold the company have made a profit on it. And CEO paid more than he could have bought it now on the stock exchange. So a good thing and a bad thing. Another bad thing that is not probably material, because if it would be material for the company, then the management would have said something about it. But receivables are receivables that are high, still high. We hope that to change in the future. But one receivable of 43 million is past you, okay, less than three months. Now this is something to watch. It isn't material. Management hasn't said anywhere that it is material, but is a risk and we have to watch it. Always risk, reward, remember. So to conclude earnings as expected, even better, I expected 2% growth in the last six months. They achieved 3% growth. Very positively surprised by the growth in the States. The risks are always there, but at this price, at this price earnings ratio of 7, at what's going to happen with an optimistic guidance, with basmati prices much higher than they have been. When Amira made these numbers that we are looking now at, I'm very, very positive and I find Amira a very low risk, high reward stock. As for the stock price, what will it do? I have absolutely no idea. In the short term, no idea. In the long term, I know Amira is going to grow their book value, grow their earnings, grow their revenues and grow as a company as it did for 15% per year in the last six years. So please leave your comments below the video here on YouTube. Happy to answer them. I'm happy to discuss them in a holistic perspective. Thank you for watching and I'll see you in the next video.