This is one of the worst companies i have seen in CG. Reasons for this statement –
- Lot of related party transactions.
- Promoters putting capital in Subsidiary at lower valuations
- Promoters buying / selling stake in open market at regular intervals
- Promoters keep raising money – given its a Capital intensive business – at discount leading to dilution of EPS for existing shareholders
Only good thing about the company – Its in sunrise sector.
But i feel existing shareholders might have a hard time to make money from here in this counter.
Amtek was a similar case study. Amtek auto, Castex, MFL, ACIL, OCL, etc. went down (4-5 lac group) and had same things.
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