MPS Ltd

Mahesh,

Thanks for the views.

Regarding deploying the funds they have raised I have slightly different views. I also am holding MPS since a long time but I am not worried about the time taken by management in deploying the funds.

What was good was the opportune timing of raising the funds. And now I would prefer to give them plenty of time to find out a bargain deal and only then act.

Management cant act with token acquisitions only to please the market participants. In fact I would prefer that they focus more on the business rather than worry about market reactions. Because market reactions are transient whereas business decisions have long term implications.

And stocks correcting 30-40% from the tops is nothing new in the journey of big winners.

Till now whatever we have in front of us is the track record of the management in terms of improving a dying business after takeover and wealth creation for shareholders.

They are on record about their targets to double their revenues and I would like to give them time to prove their words. The rejig at the top with Mr Nishith Arora giving up the CEO place to his son and himself trying to look after the strategic aspects like acquisition etc seems to be a step in the right direction.

About correction in stock prices, I feel part of it might be due to general market conditions also.

What is good about MPS is the business characteristics of the company. There have been instances in the past too where prior to q1 fy 15 results also there were doubts about the growth prospects and just a quarter or two of good growth allays all fears.

MPS is one company where one can afford to wait because here he is being paid (dividends) for his waiting. I personally am invested in the company now for quite some time but never have had any worries. I feel its a company one buys and practically goes to sleep. And this sleep is more peaceful because of a lack of newsflow as compared to the pharma companies I hold and others I track.

disc: holding as mentioned in the post.