It is always good to listen promoters. However, we need to be cautious and we should know what we are paying for buying a SME / Micro / small / mid cap company on words of the promoters.
It is not good to compare EFC (I) Promoters with Manapasand Beverages Ltd. However, to refresh everyone’s memory on how promoters of this company was selling stories and all well-known analysts / magazines were promoting his vision ! We all know how many retail investors lost their wealth by investing in this company. Following are few links –
(1) Listen (@ 10 minutes) Manpasand Beverages Ltd promoters – https://www.youtube.com/watch?v=BuJXPzvul88
(2) Forbes article – Dhirendra Singh Makes A Fortune Selling Juice To Indian Small Towns And Villages
(3) Motilal Oswal report – https://www.motilaloswal.com/site/rreports/636223141693228805.pdf
In 2017 – Manpasand Beverages Ltd was selling at higher PE than Varun Beverages ! People who loved stories of promoters and entered Manpasand Beverages lost wealth and people who trusted professional promoters, having profession brands, created wealth- irony is Varun beverages was cheaper than Manpasand in 2017!
In bull market, no one has doubt on any dream sold by the promoters and buying without thinking what they are paying !! Such people sometimes earn money but most of times learn it hardaway !
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