Vivek – staing on with Tata Elxsi I will just reiterate that we are in living in an inflection point so as to say where in there would be lots and lots of disruptive changes which are going to take place in near future. Companies like Tata Elxsi are in suddenly finding themselves in sweet spot and inventing new avenues everyday for growing up thier business. There could be a lot of explosive growth going ahead and they are in right space. For such business conventional way of valuing them may not be right – they could take over lots of tech starts ups, medical industry may be a big game changer for them. So its a very very interesting space to be in. Sadly I have only 100 stocks now.

For the same reason I bought into KPIT and now looking into intellect design arena which is again in sweet spot in digital banking services which may now another big disruptive area.

Will react to Kaveri seeds by night – needs to go over this yr annual report first – my gut feel such a price damage is happened due to huge IDFC selling.

Asian Granito AR2015 is treat to read. The amount of information provided in the report is good for a small cap. I liked the tone of AR2015. They want to scale up their revenue to 2000Cr . I liked their focus on quartz business. This is going to be a good game changer. I see a good amount of household of middle class(higher income) moving to quartz. I like another fact that promoters are taking salary of 26L and hired COO with salary 70L+ . The experienced person can add more value to business. Intent looks good. They have started a showroom in Southafrica.

Disc:- Invested from 74 level. Averaged up as well. 2% of portfolio holding.

your take on kaveri at cmp Varun?

Hi Gaurav,

Thanks for sharing the annual report.
Let’s see the breakup of the 8.9 Cr which looks like a huge jump.
In 8.9 we have 2.5 of the previous year and 6.3 of the present year. The 6.3 comprises of the 4.8 cr proceeds from the borrowings. Hence one should see the cash and cash equivalents in the balance sheet in the light of debt taken by the company.
For checking out the value creation stuff you can check if the company is generating free cash flow year on year( FCF is basically the left out cash after taking care of the operational need and capex requirement of the company). An average for last three year can be taken in this case.

Again thanks for sharing this company, we only learn from cross-learning & nobody is expert in anything if he is a life long learner.

Regards
Shivansh Mishra

There were rumours that Vasan Eye Care was a front, and so were rumours of another firm for which the Veritas analyst got arrested – Negative stock report lands analyst in jail

I once met the MD of a claimed 100 cr Hyderabad based software firm to sell my software product. He asked me to come over to his office. These were the days of STPI and 100% tax exemption on software exports. I went up a shady building in Ameerpet and lo and behold, I found a 5000 sq ft large room dimly lit, arranged like a classroom, with about 100 people. The MD’s room was the only cubicle; and even to my naive self something just did not add up. He told me he generates 100 crores with just that room. You either had to think he had some terrific business or that he was looking for a sucker.

Later a friend told me that many ‘software’ firms generate fake export invoices to bring back unaccounted money sent abroad, legitimately and free from tax . These offices are just ‘show baazi’.

I also recall going to Satyam’s accounts department on business through someone close to Ramalinga Raju in early 2002. The department looked like a very small Govt office with files stacked up the ceiling. I was of course in awe of the firm and Ramalinga Raju and just thought this is how business is done

In any case I think the SEBI order on Satyam dated July 15 2014 is very useful for forensic buffs (Sebi orders are generally useful) to learn the inner workings. I am attaching the same here.

Satyam order by sebi.pdf (1.1 MB)