HDFC Bank surpasses expectations with a 5.3% rise in net profit to ₹16,821 crore for the September quarter, aided by an increase in net interest income. The bank focuses on reducing borrowings, controlling unsecured loans, and improving credit-deposit ratio, and witnessed a decline in provisions and slippages.
Kiri Industries: Loan reduction and demand surge (20-10-2024)
Reminds me of Warren Buffett quote “A full wallet is like a full bladder; you may have the urge to pee it away”
Another fun fact below folks – this is from 2010 showing the Dystar acquisition capital structure – Below structure shows that KDCL (which is Kiri Industries) put Eu 13.22 mn for 37.8% equity stake and allowed Well Prospering Ltd. (which is LongSheng or Senda) to take majority stake 62.2% as Convertible Bonds. This meant that
- Senda had option to convert into equity if things go great (and they did convert into equity and took control and started Minority Oppression on Kiri) and
- if things go south – Kiri takes all downside and Senda with its debt is superior to Kiri’s equity in capital stack. Sends was responsible and covered itself as this acquisition was from bankruptcy proceedings. But Kiri was clearly aggressive. And they still show this aggression in the latest Litigation Financing.
Again it may all work out fine but just highlighting why market is not recognizing the value and that promoter is clearly aggressive so much that in their aggression they take risky steps! The genesis of 10 years of legal case is the wrong structure which Kiri entered into in 2010. So in some way it is their own making.
Market is supreme!!!
Invested small portion of pf.
Kiri Industries: Loan reduction and demand surge (20-10-2024)
And what is more amazing is that in 2013 the promoter’s pledge was invoked wrongfully (as it was invoked despite Kiri paid all the loan) by the lenders and lenders sold them in the open market. So promoter’s stake went down. Despite this experience, promoter again went into pledge situation. And they did not learn anything basically.
Another case – betting significant money on copper project on the basis of one guy – Mr. Sarkar. Too aggressive behaviour.
Also compare this company with peers who are doing Copper project (Birla, Adani, JSW – all heavily experienced and deep pocketed players in metal/minning industry). So market will never value it till money comes. And still it should trade below cash till the 1st phase of copper gets operational in time and budget with limited bleeding in the 1st few months of operations. Basically lot of question marks so market will remain uncomfortable. This stock will not run on Hope but on Facts!
Disclaimer – invested small % of pf
Solex Energy – Undervalued Solar PV Manufacturer or Microcap Value Trap? (20-10-2024)
Anybody has idea on why promoter has decreased his shareholding in the last quarter ?
Arvind Kejriwal holds marathon AAP meet, urges party workers to redouble efforts to win all 70 seats in Delhi polls (20-10-2024)
Arvind Kejriwal hails AAP’s resilience amid alleged harassment by BJP and urges unity and effort for the upcoming Delhi assembly elections. He criticizes BJP for trying to dismantle AAP’s progress and stresses the importance of continuing AAP’s governance for Delhi’s future.