Below I see red flags. Pls let know in case you have other point of view.
Red Flags:
API & CRAMs business which company sold off accounts for 96% of turnover. So almost entire business is gone. With the money, company is reducing debt but company also approved unsecured loan to In-Swift Ltd which is another group company.
Going forward In-Swift Labs will merge with In-Swift Ltd. In-Swift company has increased borrowing limits from 1500 Crs to 2000 Crs. Market cap of In-Swift is only Rs 129 Crs
So question is where are minority shareholders? What are company’s future plans for its remaining core business?
Note – Company has done warrant issue that’s positive sign. But company doesn’t do concall, not distributed any dividend for last 13 yrs.
My Assessment: Unless someone is doing ground level scuttlebutt, very difficult to judge what’s happening inside.
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