Just my two cents:-
- Open Market selling, yes shares are being sold openly in the market. Many times, there is no block deal.Plenty of time institutions also buy openly from the markets. However, this is not the real risk and is more to do with the voting nature of Mr. Market
2.Real risk lies in LRPC strands, and capacity addition by Jindal. Will be interesting to see if they can hold their margins or not. That is what I am looking at, given the management is guiding to increase VAP as a % mix.
+Another point to note is Bekaert which is the world market leader in steel wire ropes is headquartered out of Europe, Brussels. Might face a lot of challenges with procuring steel for manufacturing steel wire ropes, that can create a market vacuum for both Usha M and Bharat Wires to exploit.
Disc: Invested since 60s, not a reco to buy or sell.
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