Gujarat Ambuja Exports

There are two major red flags post AGM:

1. They have drastically reduced EBITA margin range from 12-20% to 8-15% range ! The reason given for this downward shift is “volatility in maize prices”. Now, that reasoning doesn’t reflects good as the very purpose of giving margin range is to accomodate the best and worst of scenarios !. Also with kind of these 8-12% margins, even with new capacities coming on stream, share price doesn’t have any much headroom for upside.
   2). The way he ducked the maiz citchem question doesn’t augur well with the governance standards. Also, one participant rightly addressed this question to other members of board (minus chairman as he is the interested party), but seems other board members are just puppets. No one even bothered to attempt to answer the question.