Motilal Oswal was a big investor in Manpasad Beverages and defended it vigorously. I wouldn’t give too much credit to diligence of an HNI investor who would have invested at peak of bull run in hopes of quick buck. The biggest red flag for me is Rs. 180 cr cash acquisition of 4-year old Madhur Confectioners (again a questionable company) which defies all logic and is clear cash siphoning. Even the Promoter’s shareholding has fallen from 51% to 39% in last 2 years. Unless there is contrary feedback from somebody who has confirmed doing on ground diligence, I would classify this company as a sham.

PS: You should check their YouTube channel. It’s hilarious!

Your conviction in this seems to be a solid one.

Since last week, I am going through their some of recent concall transcript & investor presentations.

Some of the key points observed:

1. Catalyst for Growth coming from two verticals mainly i.e. NBFC & HFC
2. AMC stake, seems more of a liquid cash position – which can be used to encash when cash is needed to support growth of NBFC & HFC (to augment capital base)
3. Insurance business can be listed in few years down the line (like edelweiss has communicated recently)
4. ARC & Money (broking biz) does not seems to be focus area.

With above in mind; Growth, profitability, NPA levels, credit cost, regulatory environment, underlying economic conditions and investor sentiments around NBFC & HFC will ultimately determine the price movement in ABC share price.

Would be glad to learn & understand more details about your (or other fellow VP members) solid conviction either in favor (or against) ABC.

Disc: Not yet invested in ABC, but holding 7% of PF in Edelweiss.

Do we know if any big HNI has been invested in this company?

I found this online, not sure if we can trust it,