Its an important filter but just go through the conference calls to get the whole idea about the company history, current situation and it’s future. A company with 80 Cr. market cap( at the time of first conf. call) conducted two hour call and admitting the mistakes during last cycle, being conservative and cautious this time, current opportunity and highlighting risks, give some solace. This kind of microcap investing always come with uncertainty and some or other item of the checklist is always missing, its up to the investor to take the call whatever he/she comfortable with. Regarding low stake, another way to look at, if a promotor has 15% stake but that is 90% of his networth(That’s what the promotor replied) that implies complete skin in the game and total focus in the company. This situation is better than a promoter having 50% stake but that could be a very tiny fraction of his overall networth and simultaneously managing 10 other companies also.
Yes, the stock trajectory could be volatile due to very low promoter stake and it does not give confidence to investor community and valuation could remain subdued but if story unfolds and shows in the earnings then both rerating and profit growth could give a decent returns.
Conf. call :
| Subscribe To Our Free Newsletter |
