DCX Systems Ltd

Things are making sense except this –

I’ve studied Ajay Upadhyay’s history, portfolio size, past company choices, failures & success in markets – he isn’t a punter, trader, or your average Joe. He’s extremely prudent and I’d like to think that he knows very well what he’s doing.

Usha martin, Elecon, Genus, Time Technoplast, Skipper Ltd, Dollar, Precam, all super solid companies, and also a master of turnarounds in WIL, Vascon, etc.

I’d like to think that it is very unlike him to continue to invest in a company that may seem to have CG issues (OMAXE feels like an outlier to me, at least for now).

So obviously, he is comfortable with the promoter sale which took place earlier and the one today.

As he holds more than 1% and I think after today’s deal maybe near or slightly more than 2%, the questions in my mind are:

1. Being such a large shareholder, would he have to be informed by the CS (or owner) of the reason for the promoter group sale? The fact that he bought half of it, maybe yes…?

2. The company seems primed and the runway can be huge – if this is so (that’s why he’s buying?) – what could potential reasons be for promoter to offload? Just some cash generation?

3. If if was just cash generation – then why are they selling on the first uptick post good news, where price is just reversing and surely by end of the week / month it could possibly be much higher. They sold today at 20 less than their previous sale. Surely, they are not living off the street in need of immediate cash.

There seems to be more to this and one cannot truly understand by just looking at this sale information in a single dimension.

Would love to hear thoughts & ideas around this.

Invested & holding a healthy position.