They had informed about a merger with Gujjubhai Foods Pvt Ltd after which equity will dilute and their shareholding will increase to 75%. But the market cap should remain constant, so the price must fall by proportionate amount. This is why I sold.
Regarding results:
- The plant and machinery is of less than 1Cr. Are they manufacturing the products or trading only?
- The debtor days are high compared to other FMCG companies. It is not a problem in growing company but since one of the debtor defaulted leading to loss, are the others safe?
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