How The Mighty Have Fallen
Sure, I understand their doubts, who wants to buy and invest on a company that never perform in the last 10 years. In 2005, Ramayana posted net profit IDR 302 Billion, while in 2015, Ramayana net profit was “only” IDR 336 Billion. In other words, Ramayana only grew by 10% over the last 10 years. Even Indonesia 2005 CPI number was 17%. What made it worse is, Ramayana always failed to beat consensus in the last 5 years.
So yeah, I understand when many analysts said to me.
“HOW THE MIGHTY RAMAYANA HAVE FALLEN !”
Back into their glory days in 2000- early 2002, Ramayana was investors darling and a princess. Ramayana was voted amongest the top 20 of the 200 Best Small Companies in the WORLD by FORBES global magazine in October 2001, winning 3 prestigious awards in Asia Money Poll 2000 : Best Managed Company in Indonesia, Best Investor Relations in Indonesia, Best in Most Reliable Forecasting in Indonesia.
The analyst, portfolio manager, and even suppliers also loved Ramayana at that time.
“Ramayana is one of the best-managed companies in all of Asia, not only Indonesia,” says Ray Jovanich, the portfolio head for Crédit Agricole in Hong Kong. He’s followed the company since 1994.
“Paulus tries to help his suppliers. He’s low profile, but he knows the market,” says Y ongky Komaladi, whose eponymous company in Jakarta has supplied Ramayana with shoes and other goods for a decade.
“Matahari has been losing market share to Ramayana, Sometimes they run out of best-selling items during peak periods, they could easily boost top-line growth by 5% with better systems.” says Kim Kwie Sjamsudin, an analyst with ABN Amro in Jakarta.