I am still of the same opinion. Better to have a mistake of omission than a mistake of commission.
The red flags for me are: (in addition to my original post).
a) For a company with a MCap of 13000M, they fail to meet regulatory requirements for timely disclosure of information.
b) The MD was arrested and the business failed to disclose the information in a timely manner until the matter was taken into hands by SEBI. No matter the pretext/reason, an arrest in India usually happens when its something serious. Personally speaking, I wouldn’t handover my money to a crook.
c) Again for a company this big, I find it very spooky that they do not have a half yearly conference call. Also didn’t find the video of the AGM or its transcript. Officially they finished the AGM in about 30 minutes.
d) An MoU is just that – A memorandum of understanding.
And @vineet_mittal
It wouldn’t matter if the promoters put in their own money or not if this is an elaborate accounting scam. High rice prices only indicate a peak in this commodity business. The business is not generating cash. Period.
I am open to your views if you show me the numbers as well. Look under the hood (look at the numbers in the annual report rather than on screener/trendlyne). A story for the business can only go so far.
Regards
M
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