A detailed report on Raymond Lifestyle Limited by Motilal Oswal
Raymond Lifestyle Motilal IC 2024.pdf (3.9 MB)

Can someone help me with current capacity of Goldiam per annum in terms of carats and how many reactors do they have ?

Below is an interesting case of red flags. You’re welcome to check it out and correct me if I’m wrong somewhere or add to the list of red flags

(Note- This was done through just a cursory glance on the financials and fy24 annual report. So it’s not thorough)

Company name – BLUE CLOUD SOFTECH SOLUTIONS
PE – 137
Market cap- 3526cr

Here we go:

Its a Simple chain of thought

Sudden increase in revenues → negative Operating cash flows last 2 years (so sales are probably fictious) → promoter stake has come down from 55% to 2% in space of 3 years (if sales growth is so fast why is promoter rapidly selling stake → the stake sale has been accompanied with huge rise in share price , from 13 rs to 250rs high… so probably operator driven stock… promoter – operator nexus very likely-> warrants were alloted at very cheap prices and then sold by promoter at inflated prices to retail investors-> so operator drives stock up, promoter dumps stock on dumb retail investors

Also name of company is very fancy…to lure in the unsuspecting public

Company has 1 cr of fixed assets like property and computers (48cr of intangible assets in fixed assets) … doing 500cr sales…highly unlikely

50cr investment as loan given to related party (IT corpz ltd) … quite possibly siphoning of off funds from listed company to unlisted promoter company

Out of 504cr revenue, 186cr is from foreign branch (many times it has happened… where a listed company reports revenue from foreign branch/subsidiary only for that subsidiary to turn out fictious… Brightcom group is an example)

Statutory auditor resigned

No details given in annual report about the number of employees on company books…no details about promoter remuneration. No details of management discussion on industry and company operations.

Subsidiary was bought for 50cr from some parties through share swap arrangements (Did’nt look into it in depth, could be a plethora of red flags in here as well)

Disclaimer: This was just an interesting exercise to perform. waiting to hear you guys’ opinion

Thats 2000 crores revenue we must be speaking about acc to capacity which itself hasnt been utilised as off now as Demand hasnt grown to the existing capacity. But then timeline around which this maybe monetised isn’t known as off now.
By your calculation we cannot even try and extrapolate where the Profitability would be in next 3 years down the line.
Instead take into account current order book and then execution timeline,OPM and EBIDTA Margins,EPS all annualised and then projecting the Market cap of Shakti pumps \going ahead at the end of the year.
Hpe this helps

Company secretary/Compliance officer has resigned, not the auditor. Shouldn’t impact the stock quality