Saturday, December 06, 2014

RICO AUTO INDUSTRIES LTD (Face Value: Re.1)
~~Hemant K Gupta
[Editor: If the money chases these kinds of stocks strongly recommended by SEBI registered analysts, then how will the shares of A-group companies like Jaiprakash Power Ventures Ltd (which is having temporary setbacks; CMP: Rs.12.94) or B-group turnaround stories like Allied Digital Services Ltd (Rs.21.20) or ARSS Infrastructure Projects Ltd (Rs.41.60), Rise-up? SEBI should look into these kinds of manipulations, which are generally the handiworks of SEBI's, "Yes Men"] 
Promoters are definitely not investor friendly. When auto segment in India is progressing so well, Rico Auto Ltd (Rs.47.35) continues to languish with stagnant sales and either minor/negligible profits or LOSSES. 

Company has made LOSS of Rs.2.79 Cr in H1. Do we need to elaborate more as to what type of rotten promoters are controlling Rico Auto. 

And investors are getting carried away by rumours being spread by known analysts/HNI investors and media. What justification of these valuations (Market price works out to Rs 473.50 on Rs.10 FV)? 

Company has horrible track record. Even if turn around in near future, company will distribute gold coins to its shareholders??? There is no dearth of promoters in India who treat public money as their private property. 
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