Are the promoters planning further dilution? Last AGM had agenda items for (a) raising authorised capital from Rs 15 cr to 20 cr and (b) capital raising option for Rs 500 crore.
Any thoughts from members who are tracking 8k as to what kind of capital structure are they planning for the company and more m&a to come.
Posting my updated portfolio-
BAJAJ FINANCE- 13%
KVB - 11%
YES BANK - 16%
JYOTHY LABS - 10%
MARICO - 10%
TORRENT PH - 10%
EMAMI - 9%
IPCA LABS - 7%
JB CHEM - 5%
JAGRAN PR - 4%
GODREJ CONS - 2%
ITC - 2%
NEW ADDITIONS- GODREJ CONSUMER PRODUCTS
NO SELLING IN LAST ONE YEAR
I live in Bangalore and I have seen that every new building is now made of blocks(I guess these are AAC only). I got interested in HIL because of that. Their Balance sheet is very clean and management is sound. Also I can't understand why Asbestos overhang is there? In India we don't see such stringy conditions implementing anytime soon. They are a dominant player in Telangana and AP which I guess would be a big consumer for their AAC building blocks. Still I would love to know from you that what was the exact reason for you to sell of your stock holding from HIL? Was is just price inaction ?
Thanks
@whipsaw - Promoter shareholding has dipped from 66.28% in 12/2014 to 61.96 in 6/2015. Thought this was in the article but I actually saw that elsewhere.
However, I just noticed that the promoter did not sell any shares but his % holding was diluted after issuance of 700,000 shares through warrant conversion by non promoter investors. I was (partially) mistaken - thanks for pointing this out.
Hello,
Did anyone attend the AGM? The stock price has been consistently falling ever since the article in Business Standard regarding its receivables. SES seems to think the receivables figure of 42 cr. at the end of FY15 is fishy. Company has already issued a clarification stating that receivables are owing to K-12 services business (B2B model). Would like to know if this was discussed in the AGM and what was the management response to the queries.
Any first hand experience would be really appreciated.
Thanks
Sachit
This is what I don't like. I hope it remains an enabling resolution only.There is no pressing need to raise equity unless they have some grand plans to acquire something big. The debt for Australian acquisition is supposed to be manageable.
I think FY17 is fully discounted in the price. Given the visibility of earnings, management pedigree, operational history etc I think it is still worth a bet.
Generally agree with ur investment logic.. however choice of companies could be debated.. Include Pharma.. lot of good discussions available, identify a basket and atleast 20% of ur portfolio there... same is true for finance.. identify a couple of financial sector companies and invest atleast 15% there.. since u r getting in now, dont be discouraged by high valuations, these companies are expensive for a valid reason and they may continue to do so for sometime to come.. therefore risk mitigation in these companies would be better by doing graduated entry.. waiting for valuations to come down before u invest may not be such a good idea.
Regards
It becomes a long term buy below 200 which I guess will come sooner than expected.
Hi
Portfolio Update-
Finally took positions in Edelweiss Financial services. Hope for a slide in banks tomorrow to load on Axis bank/yes bank for long term.