L&T Mutual Fund and HDFC Small and mid cap fund have taken positions in OOCL.

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/D3D3FE7D_183E_4B68_A141_2A7DF8D799C7_113303.pdf

Hello Vikskukreja,
Thanks for pointing this and yes they did the IPO but when some Institution does some IPO(of another company), it of course does checks the details of the company, potential of the company and most importantly valuation of the company through detailed process and scrutiny and if they are not satisfied they rejects the company------as there is every chance of under subscription and in that case the underwriter(VLS in this case) will have to absorb the remaining shares-----so in this case VLS must have realized the potential and valuation of "Relaxo" and that is why they went ahead with the IPO------so the skill and effort VLS had put and selected "Relaxo" , that itself proves VLS's has good investing strategy-------and also apart from Relaxo , VLS has some other good stocks in the portfolio as well-------so overall VLS is doing well-----now the decision here is instead of buying a holding company VLS , we can select the company directly(in this case its Neo)----------basically its equal credit to find a good company from primary market(IPO) and find a good company from secondary market.....

I request all again to give their valuable inputs so that we can evaluate this company-----with the demand of Technical textiles increasing hugely in India as well as other countries like USA, Latin America and other countries, I think this Technical textiles sector should perform well in near future-----and with good capacity of Neo, we can investigate this company further!!!!!!!

I agree. When earnings visibility becomes hazy de-rating happens. Makes sense to stick to ones own circle of competence, where future earnings can be predicted to a extent.

I would like to add one other important point to the list. To check if cash flow from operations matches that of PAT. Lots of micro cap companies have realised our love for earnings & return ratios, they pump up the earnings on the PL account. Only way to verify them is by checking the cash flow statement. There are many which do not match.
They run up in good time but will bite back later.

Ex : Tree house education.
Cash flows did not match PAT. Later ,the issue raised by an NGO on high accounts receivable , crashed tree house's price to a 52 week low inspite of good growth and return ratios . Though the company came up with a clarification , the issue is still not clear.

Dr Vijay malik's blog provides a simple tool for analysing the same. Thanks to him.

VLS didn't discover relaxo, they were part of relaxo IPO process, and held shares during IPO when takers were not enough.

Claims from the AR

• 8 out of 10 customers who walk in to buy a cooler ask for symphony.
• Their tonnage based 4-12 ton air coolers for the market 'in between' residential and industrial coolers has received a good response. Calling it the Rolls Royce of air coolers. Symphony expects this to be a game changer.

My place(TN) not being a ideal place for coolers I find very few new models here. Hope members from the west / north could verify these claims and the customer response to the new ton based cooler.