As the letter itself says,

Mr. Suketu Kapadia who has
tendered his resignation as the Chief Internal Auditor (within the category of Senior Management) of the Bank, in order to head Internal Audit for one of India’s largest Banks.

This looks like a routine resignation to move to a better job opportunity.

Thanks Harshit for starting this thread…I also have started tracking Rishabh about 15 days back… few more things which I would like to add:
PROS
(1) company has given a guidance of 700 Cr in CY although they already have achieved 352 Cr in H1 and historically H2 has been better than H1
(2) Rishabh is overseas based in Poland where it enjoys EU funds for innovations R& D which may be considered very good, Poland is one of most developed countries in EU ,22 % sale of Rishabh group comes from Poland
(3) Company sees huge scope in its newly rolled out solar inverters if it works company margin will increase drastically

Cons:
(1) Company has received a notice from tax authority, but they have challenged, although they have already made provision in B/S
(2) A expense in form of ESOP due to some legal requirement has to give company profitability will be affected upto FY 27 as every year they will pay foe ESOP till that year

Please add something if left out

Senco Gold is in an expansion phase and valuation very comfortable, still trading at a discount at 28 PE FY24E in comparison to Kalyan (60PE FY24E) and Titan (85PE FY24E).

However, can someone throw some light on the pending cases against the company, as mentioned by a boarder here:

Tips has done extremely well over the last few quarters and provides a very strong guidance for the next 2-3years with 30% Topline and Bottomline growth. However, what puzzles me is the answer to few questions during the Q2’FY2024 Concall.

1. Capital Allocation along with sustainability
   

   The company has made a turn around with going digital approach. What is next for sustainability ? Giving dividends and buybacks is good for shareholders but where is the growth strategy ? SImilar was the case in ITC where dividend payout was extremely good but with a missing growth strategy, the stock price was sideways for over 4years.

2. Management Change w/o clear R&R
   

   The top slot in the company has been changed and 2quarters are needed to clarify R&R ? Not a very convincing response in my view. A strategic position needs have a clarity on R&R before head hunting and the execution of plan or transfer of responsibility can definitely take few months. This makes me think why TIPS went out in the market to fill the position and not elevate someone internally ?

I would definitely like to revisit the Concall after a couple of quarters and see a growth strategy charted out which can result in company’s growth strucutrally. No concerns observed for meeting the targets for FY2024 but makes me think if this is already priced in over last 6months.

Disc: Not invested