In the last 1 year, i have invested in vascon 2 times and got out with profits (40% and 20%) both times… I wanted to hold it for the long term but found a few red flags in the annual report
Vascon annual report red flags –
Very high promoter remunition – 18cr on net profit of 78cr
Debenture investment of 27cr in ascent hotep private ltd
High rate of interest on borrowings- 12-15%
Bad situation in ageing of trade receivables and payables –
100cr + receivables in 1 yr + category
Current loans given of 91cr
10cr provided as finance to related parties
Lots of related party transaction
Current valuations proving attractive. Waiting for q2 results to see cash flows and recievables situation
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