Hello folks,
I came across this company and have been studying it with the limited amount of knowledge I have (new investor) and found it relatively cheap in the infra proxies universe. Its a fairly simple business, they make nuts, bolts and galvanized wires, among other things. Family owned. No real right to win/moat.
Yet they’ve gone up 360% in one year including a 30% in the last month or so. I got lucky that it rallied post my purchase, but its a stock with very close limits and some iffy volume numbers and price action in the past few weeks.
So I decided to take a closer look again when they released their annual report last week. And being new, I couldn’t figure out whether their related party transactions are a big red flag or not. For reference, top line is 420 cr while bottom line is 24 cr.
They also made a 2.8 cr investment in a private entity owned by the promoters.
If someone could explain what’s happening here, would be grateful.
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