I reported earlier that Dharmesh Kant of IndiaNivesh had recommended a buy of Camson Bio-Tech, a micro-cap, for the target price of Rs. 252, which was an upside of 63% from the then market price of Rs. 154.
I also pointed out that IndiaNivesh held 4,88,354 shares of Camson as of 30th September 2014.
Unfortunately, the stock has not done well so far. At the CMP of Rs. 121, there is a loss of 21% from the stock.
This, by itself, is not alarming because it is not unusual for micro-caps to lose or gain a chunk of their value in a short time. Also, Dharmesh has, in his report, cautioned that the price movements can be volatile.
What sent alarm bells clanging is the news that IndiaNivesh had sold 156,208 shares on 24th December at Rs. 118 per share. Does this spell a loss of confidence in the stock and if so, should we also jettison the stock and salvage what we can is what everybody was wondering.
However, a close study reveals that there may be nothing to be alarmed about because the buyer of the shares is none other than Snehlata Rajesh Nuwal, the wife of Rajesh Nuwal, the MD of IndiaNivesh.
In fact, in the week ended 27th December 2014, IndiaNivesh and Snehlata Rajesh Nuwal have entered into a number of buy-sell transactions in scrips such as Technocraft Ltd, EPC Irrigation, Future Retail, Brooks Labs, etc.
The purpose of the exercise appears to be to “book loss” in the hands of IndiaNivesh so that the same is available for set-off against some other fabulous gains that IndiaNivesh must have earned. It is just innocuous tax planning.
So, for the moment, we can rest easy till the Q3FY15 results come.