Did some math around stuff as to why I feel this might not reach the sky. Would appreciate if you spot and flaws or wrong assumptions
Cmp → 3591
pref price → 1017
Current margin → ~2500
shares alloted → ~2L date 26 feb 2024 then price → 1085 ~ 7% discount
Full value of alloted warrents(payable to company)- > 21 cr
25% of total value → 5.25 cr down payment to company
remaining payment – > 15.75 cr
current value of warrants → 74.49
profit to promoter → 74.49–21(5.25 payed, no need to pay 15.75 can be detucted from profit) → 53 cr
Latest quarter profit → 37 cr with other income
Latest quarter profit → 17 cr without other income
June quarter profit → 21 cr(There was no other income)
17+21 → 38 cr
So promoter made more money than company haha interesting.
Other income is also shady why now ? they sold hdfc bank that stock as given 0 or even less returns if bought after Nov 2020(If somebody can help me with buying price or date).
If you connect the dots you will see why management had to come out with other income so as to keep stock price going upwards.
Upward momentum because they had warrants or in traders language Call Options. So felt pressurised to push bottom line up.
Even at a overall loss on sale of hdfc stocks when top line stayed flattish.
Equity dilution + decrease in profits + looting company treasures + manipulating stock price
If my numbers are right convince management is not taking minortiy holders for fools ride.
Here is my twitter thread on the same with overview of the same. Would appreciate any miscalculations or wrong assumptions here.
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