Loss: Rs.104Cr (profit Rs.15.40)
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.