I completely agree. You need understand why company is making profit and others are not. Most of new age business has/had always choice whether to take profit and invest back in business. They can’t even provide any update abSure which they boasted as big thing for company (see latest investor presentation and you will not find much of detail about this). I have written numerous mail to their investment department and none of them got reply. I have included Warburg pincus mail ID to show them that how much unfriendly is this company towards minority shareholders.
Company just passed resolution to increase salary of MD and chairman and I do not see any reason for this hike, though they claim that they are growing and profitable company (but most of their profit comes from reserve of 11 Bn INR – if you just put FD at 7%, you can get 70 crs). He do not even come to any forum to clarify investor doubt T.V or any other format (I have see few interview of head of consumer business Banvari Lal Sharma and one interview of head of old car business – Mr. Sandeep) and they will keep issuing ESOP. Founder holds only 2%. It is my believe he thinks that it is not his responsibility to address company’s minority shareholder’s concerns/query as It was FPO and not IPO so no money came to company but he always boast about status of public company (that they are the first listed car trading platform).
Company’s investor presentation is worst – copy pasted financial statement and add Adjusted details to show good margin.
Just to give you one example, Laurus did concall when it acquired Richcore for 275 crs. This is company invest >500 crs (~ 20-25% of market cap) and not even single interview on any forum to explain rational for this. they did not give any thought to buyback itself. It is major reversal in terms of policy as they always mentioned that we are asset light business but I am not sure how they will keep this policy after OLX Auto acquisition so they should be forthcoming on this one but as usual no detailed communications by company.
Disc – Stuck since FPO – Have averaged and looking for exit.
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