The share has come down from the dizzy heights of ₹3100 in Feb ’22 to the ₹1421 level today. I have gone through the thread carefully. I am not so knowledgeable about either the financial markets or carbon credits, but what comes out is that there were allegations against the company. I am not sure any fraud has been proved. Proved not in the sense of criminal law, but in the sense that it has shaken the confidence of its existing or prospective clients.
In one of the comments at the concerned UN site, there was a mention that EKI had been banned by NHPC. I went through the NHPC banning list, but have not come across this company.
To me a few facts are clear. Its PE is: 8.35, and the ROCE and ROE a mind boggling 236% and 176%. That means it is still one of the cheapest stocks available.
Secondly, carbon credits are not going away in a hurry. Environment is top of the agenda in the west. “In the past, India has made investments in producing carbon credits and exporting them to international enterprises. Between 2010 and June 2022, India issued 35.94 million carbon credits or nearly 17% of all voluntary carbon market credits issued globally. The market for carbon credits increased by 164% globally in 2021. It is anticipated to reach $100 billion by 2030.”
Carbon credits and India’s carbon market | Deccan Herald
As for other companies, IEX project is still in future.
Sharika Enterprises share is at ₹7.46. Moneycontrol shows its EPS at zero.
The profits have reduced a bit, but it is not as if the company has crashed. To my mind, it provides an opportunity to buy.
I have made some investment in the share today, tempted by the quotients quoted above. It is not a recommendation, but like trying to convince myself that I have not made a fool of myself.
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