Hemant K Gupta
COMPACT DISC INDIA LTD (now CDI International Ltd)
Sell
advice on this scrip being given by this writer since 3 years. Company
used to make grandiose announcements (which were fake) about foray in
Hollywood and what not. Company even announced delisting plans which
enabled vested interests to offload their huge quantities at fabulous
price. Figures being reported by Compact Disc have always been bogus.
Provision for depreciation is always NIL. Have you ever heard such a
thing? Employee cost for full year just 41 lacs which is just 0.2% of
sales. Either company has been operating without any employees or
employees have been working for Compact Disc for free! General and
Administrative Expenses again are negligible. Wonder how income tax
department not smelling any scam? SELL. Scrip can be Rs 1 or Rs 2 in
coming years.
PIRAMAL GLASS INDIA LTD.
Several
brokerage houses were coming out with Buy recommendation on this scrip
with fancy price targets only because company belongs to Ajay Piramal
and company went for aggressive expansion. However, this writer always
advised not to buy this scrip as firstly, promoter is investor-enemy.
Secondly, aggressive expansion of capacity does not necessarily mean
higher profits. Rather, many times expansion becomes big burden and
particularly in glass industry where energy costs are massive. And this
writer has proved right. Pat for Q2 has plunged to 2.17 cr as against
Pat of 22 cr in corresponding quarter of previous year despite the fact
that turnover rose 40%. Company may report better nos in coming quarter
but still fundamentally, scrip is grossly overpriced. Sell. Investors
should not be buy scrip belonging to promoters who are not trustworthy.
VARUN INDUSTRIES LTD.
Sales: Rs.40 Cr (Rs.904 Cr)
Loss: Rs.104Cr (profit Rs.15.40)
Equity--29.11 Cr
Loss: Rs.104Cr (profit Rs.15.40)
Equity--29.11 Cr
There is not printing mistake and above figures are correct. Yes,
turnover is mere 40 cr as against 904 cr turnover in corresponding
quarter of previous year. And yes, Varun has reported LOSS of 104 cr as
against Pat of 15.40 crores. This writer had advised to sell Varun when
price was hovering above Rs 200/. Despite such bad results, some times
dirty operator may play the trick of upper circuit on the counter. Such
tricks to trap gullible investors. Investors are advised not to buy this
scrip at any price. Readers may remember that when company used to make
the MOST GRANDIOSE announcement about procurement of mines in
Madagascar for Uranium, Rare Earth, Diamond etc, we had written that
such announcements are fake.Actually, population of Kalmadis and A Rajas is much more in share market.
GLODYNE TECHNOSERVE
When
scrip was being operated a big investor-cum-operator and was being
aggressively bought by big investors, this writer had been repeatedly
advising SELL advice when share price was above Rs 400/. Figures being
cooked by the company with aggressive growth in topline as well as
bottomline quarter after quarter were simply unbelievable. It is
impossible for a novice like Glodyne which was allegedly in IT
Infrastructure (more glamorous name being given for maintenance of
hardware) to report stupendous growth and huge nos. Till share price was
at high levels (which enables vested interests to off-load thier shares
to make clean sweep), company reported huge profits each quarter. When
cookie started crumbling, so did the bottomline. What has gone wrong
with India story or with IT industry that Glodyne suddenly plunges in
loss of 67 cr as against Pat of 53 crores? In between, dirty operators
may try to jack up the price to offload thier remaining holding (if
any), but in long run, scrip should continue its downside journey. DONT
BUY.
KSL Industries Ltd Rs 4 FV
Belonging
to erstwhile Bank of Rajasthan fame, investors can expect anything from
Tayal family. KSL is supposed to be in business of textiles and real
estate. All textile companies have reported huge improvement in their
bottomline for Q2. However, KSL has reported HUGE LOSS of 141 for Q2
alone and LOSS of 165 cr for H1. Investors may remember that there were
strong rumours that Bank of Rajasthan was being grossly misused by
promoters and bank's Balance Sheet had huge loopholes. Had it not been
merged with ICICI, some insiders say that scam would have come out in
the open.
JAY BHARAT TEXTILE & REAL ESTATE LTD Rs 2 FV
Another
listed entity belonging to Tayal family and again in textile and real
estate has also reported Loss of 12.70 cr for Q2 alone. Need we
elaborate further! And like Yash Birla, stock-split in various
denominations seems to be favourite tool for misguiding the investors.
K STYLE
This
is 3rd listed entity belonging to Tayal family. In order to maintain
consistent track record of the Group, this company has also reported
Loss for Q2. Tayals are amongst some industrial houses whose STYLE to
report losses is commendable. In 2013, investors are bound to come
across news that all Tayal group companies have been granted huge relief
by various banks under the garb of CDR.
STERLING INTERNATIONAL ENTERPRISE Rs 1 FV.
This
scrip was being recommended to sell when share price was above Rs 220/.
Many Marketmen were claiming that company has HUGE oil-wells overseas
and has grand future. Once share price started plunging, financial
figures also plunged. If share price is high, company goes great guns
and Sales/Margins continue to soar. What is co-relation between share
price and financial nos?
GAMMON INFRASTRUCTURE LTD Rs 2 FV
Its
Mumbai-Nasik highway become fully operational which has led to
improvement in its topline as well as bottomline. For Q2, Sales have
risen by 50% to 148 cr and company has made Pat of 5.66 cr as against
Loss of 8.85 crores. However, considering huge equity of 147 crores,
fundamentally scrip is overpriced. Don’t buy. Even otherwise, Gammon
group has always been lackluster in rewarding its shareholders.
EDUCOMP
When
education sector was being touted as new sunrise sector which will give
huge return to equity investor, this writer had advised caution and had
been constantly putting sell advice on Educomp when share price was
300% higher than Cmp. Company has reported Pat of 8.64 cr in H1 as
against Pat of 53 cr in corresponding H1 of previous year. Again another
case where profits plunge once share price starts crumbling. Educomp
has debt of 2018 crores. Shocking for a small company which has no big
factories and no expensive plant and machinery. In coming quarters,
share price should come down further. Avoid.
PIPAPAV DEFENCE
Although
company is in business of shipbuilding and has grandiose plans for
defense and what not, but its profit margins are much less than even
companies engaged in commodity manufacturing. Q2 Pat is just 8.40 crores
on sales of 666 crores. Although sales have gone up by nearly 50%, Pat
is down to 8.40 cr from 9.41 cr. fundamentally, scrip is grossly
overpriced.
Note: The problem with Mr.H K Gupta is that, he always tries to project himself as, "Holier than Thou", among the market analysts; while in reality many of his recommended scrips are no where to be spoken about, eg. Galada Power and Telecom Ltd, VBC Industries Ltd, VBC Ferro Alloys Ltd, Agro Dutch Industries Ltd (Recommended at Rs.26), SSPDL (formerly Srinivasa Shipping & Property Development Ltd. Recommended at Rs.106 against the CMP of Rs.15.), NCL Industries Ltd (it came out with a net profit of Rs.1.22 Cr against Rs.11.09, in Q2FY13), UT Ltd (the stock is making repeated losses, quarter after quarter), Andhra Petro Ltd, Simplex Infrastructure Ltd, Electrotherm Ltd (would you believe he recommended at Rs.340 against the CMP of Rs.49.30), Cubex Tubings Ltd (Recommended at Rs.57, against the CMP of Rs.7.47), Vinay Cement Ltd (no one knows when this scrip will start trading again), and so on.
Therefore, though his above arguments carry merit but he also does not have too much chance, to take high moral ground. Moreover, there are instances that, some of the scrips which he did say to avoid gave good and steady returns over a period, like Reliance Industrial Infrastructure Ltd, Sunil High Tech Ltd, etc. Also, whatever he says, the scrip of Glodyna Technoserve Ltd was recommended by a number of brokerage houses, due to its steady performance and revenue visibility. He and Debashish Basu (Money Life), therefore, suddenly cannot suddenly spin stories of its not having fundamentals. The bigger question is where were they when the brokerage houses were repeatedly recommending this scrip? Why didn't they question the authenticity of the reports at that time, if they were so sure that the company did not have fundamentals and it was simply cooking its books? Even few months back, Mr.Aashish Tater who regularly comes on Business Channels to advice the small investors, recommended the scrip with hefty targets. His mouth is now shut on the developments in the stock which he recommended on Jul 10, 2012 at 13:22, for a price target of Rs.450. This is what he said:
"I am going long on Glodyne Technoserve for a target of close to Rs 450 odd mark with a closing stop of around Rs 380. DecisionOne, its subsidiary has won USD 42 million contract into IMS service in US and we feel going further the company is going to get qualified for higher tenders which would be highly beneficial for the company. At current levels the stock looks almost priced in. Thus there is a limited downside of say around Rs 380 odd mark and limited upside to that Rs 450-460 levels under current situation. But the stock has been performing well right from our recommendation levels of Rs 230-240 and we still hold a positive view on the stock".
Now, who is to be held accountable for so much depletion of the wealth of the investors.......? It seems some of these marketmen, all of a sudden starts to understand that a company does not have fundamentals---this is ridiculous. Mr.H K Gupta, like Mr.Shankar Sharma, has extreme views. Mr.Gupta's comment, "It is impossible for a novice like Glodyne which was allegedly in IT Infrastructure (more glamorous name being given for maintenance of hardware) to report stupendous growth and huge nos", proves that he does not understand A, B, C, D of the company's business. CLICK HERE.
Therefore, the issue here is even a crow says my child is so beautiful. Hence, please place you judgements based on the above factors. In stock market it is very very difficult (or you can say nearly impossible) to get 100% accuracy on stock recommendations.
Note: The problem with Mr.H K Gupta is that, he always tries to project himself as, "Holier than Thou", among the market analysts; while in reality many of his recommended scrips are no where to be spoken about, eg. Galada Power and Telecom Ltd, VBC Industries Ltd, VBC Ferro Alloys Ltd, Agro Dutch Industries Ltd (Recommended at Rs.26), SSPDL (formerly Srinivasa Shipping & Property Development Ltd. Recommended at Rs.106 against the CMP of Rs.15.), NCL Industries Ltd (it came out with a net profit of Rs.1.22 Cr against Rs.11.09, in Q2FY13), UT Ltd (the stock is making repeated losses, quarter after quarter), Andhra Petro Ltd, Simplex Infrastructure Ltd, Electrotherm Ltd (would you believe he recommended at Rs.340 against the CMP of Rs.49.30), Cubex Tubings Ltd (Recommended at Rs.57, against the CMP of Rs.7.47), Vinay Cement Ltd (no one knows when this scrip will start trading again), and so on.
Therefore, though his above arguments carry merit but he also does not have too much chance, to take high moral ground. Moreover, there are instances that, some of the scrips which he did say to avoid gave good and steady returns over a period, like Reliance Industrial Infrastructure Ltd, Sunil High Tech Ltd, etc. Also, whatever he says, the scrip of Glodyna Technoserve Ltd was recommended by a number of brokerage houses, due to its steady performance and revenue visibility. He and Debashish Basu (Money Life), therefore, suddenly cannot suddenly spin stories of its not having fundamentals. The bigger question is where were they when the brokerage houses were repeatedly recommending this scrip? Why didn't they question the authenticity of the reports at that time, if they were so sure that the company did not have fundamentals and it was simply cooking its books? Even few months back, Mr.Aashish Tater who regularly comes on Business Channels to advice the small investors, recommended the scrip with hefty targets. His mouth is now shut on the developments in the stock which he recommended on Jul 10, 2012 at 13:22, for a price target of Rs.450. This is what he said:
"I am going long on Glodyne Technoserve for a target of close to Rs 450 odd mark with a closing stop of around Rs 380. DecisionOne, its subsidiary has won USD 42 million contract into IMS service in US and we feel going further the company is going to get qualified for higher tenders which would be highly beneficial for the company. At current levels the stock looks almost priced in. Thus there is a limited downside of say around Rs 380 odd mark and limited upside to that Rs 450-460 levels under current situation. But the stock has been performing well right from our recommendation levels of Rs 230-240 and we still hold a positive view on the stock".
Now, who is to be held accountable for so much depletion of the wealth of the investors.......? It seems some of these marketmen, all of a sudden starts to understand that a company does not have fundamentals---this is ridiculous. Mr.H K Gupta, like Mr.Shankar Sharma, has extreme views. Mr.Gupta's comment, "It is impossible for a novice like Glodyne which was allegedly in IT Infrastructure (more glamorous name being given for maintenance of hardware) to report stupendous growth and huge nos", proves that he does not understand A, B, C, D of the company's business. CLICK HERE.
Therefore, the issue here is even a crow says my child is so beautiful. Hence, please place you judgements based on the above factors. In stock market it is very very difficult (or you can say nearly impossible) to get 100% accuracy on stock recommendations.