Kalpesh’s Portfolio

I though I will give detailed answer to you post, but I took so many days to understand(again) that I’m too lazy to do that. really sorry for that.

• Promoter is well known & respected person in Gujarat.
• I did not find anything wrong with issuance of new shares in the last few years.
• I did not find anything wrong in the rights issue, their mistake was to do it at wrong price. (Yes, I consider this as their innocence)
• They are primarily a trading entity, from last few years trying to enter into manufacturing of some products.
• They have entered into a tie up agreement with Marss Herbal (India) which is engaged in manufacturing of wide range of herbal and natural use products. (Marss Herbal is a real company)
• They are into ayurvedic, food supplement, agriculture, animal feed supplement, and personal care products. but I broadly divide them into FMCG & Agri products, where they are mostly into trading in FMCG products (with few products manufacturing inhouse) & manufacture agri products inhouse(This is my inderstanding, may be erronous).

(Setting up of herbal & ayurvedic processing unit for manufacturing of cosmetic & non-cosmetic products at Village Padawala, Taluka Kotdasangani, District Rajkot (“Project”); 208.75Lakh – RHP)

• You confirmed in the thread that you recieved a real product, (Thanks for that )

They are into trading business where they are pushing sales on long credit terms. As long as they do that they will have high receivables. I don’t remember exactly but I did not find any bad debts in past Annual Reports.

I did not find anything fishy in past AR’s, if nothing is wrong, it is investable for me.

Yes receivables were equal to market cap. because market is acting irrational due limited availability of information, bad financial decisions of promoter and it being a micro-cap company.

In the next post.

Risks:
I see promoters as illiterate in finance, so this is a biggest risk.

Company is growing faster than its capacity, they need to slow down to 20-25% growth only, and now on I think they will.

Good thing is they recently onboarded Mr. Pradipkumar Harjibhai Lathiya who have 10 years of experience in finance, I dont know how good he is but I’m happy with this development.

Discl: Invested, may be biased, my research can be wrong or erronous,
Not a sebi registered, this post is only for educational purpose.