Sundaram Multi Paper, A Poison to Investors.

SUNDARAM MULTIPAPER
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The Company designs, manufactures and markets paper stationery products exercise note books, long books, note pads, scrap books, drawing books, graph books – for students of all ages, as well as office/ corporate stationery products and printing, writing & packaging paper.
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1-SUNDARAM MULTIPAPER IS A LOSS MAKING COMPANY WHICH SALES IN 2011 WAS 198 CR WHICH DECREASED AND AMOUNTS TODAY 98CR.
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2-IN LAST 2 YEARS COMPANY INCOME STATEMENT INCLUDE OTHER INCOME AMOUNTS UPTO MORE THAN 20 CR WHICH IS UNKNOWN.
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3-COMPANY ARE PAYING INTEREST ON DEBT WHICH IS MORE THAN 10 % OF TOTAL SALES ,AN ALARMING SITUATION.
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4-COMPANY IS NOT PAYING TAXES IN LAST 2 YEARS.
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5-COMPANY EBIDTA FLUCTUATING QUARTER BY QUARTER IN AYEAR WHICH IS NOT A GOOD CONDITION.
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6-COMPANY IS REGULARLY INCREASING SHARE CAPITAL BUT SALES LEVEL IS SAME AS WHAT WAS BEFORE,NO IMPROVEMENT YET NOW.
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7-COMPANY RESERVES HAS REDUCED FROM 98 CR TO 44 CR IN LAST 5 YEARS.
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8- COMPANY IS FACING WORKING CAPITAL PROBLEM WHICH HAS DECREASED FROM 99 CR TO 44 CR
IN LAST 5 YEARS.
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9-IN 2015 COMPANY ANNUAL SALES WAS 87 CR AND INVENTORY AND DEBTORS INCLUDE 85 CR
MEANS MOST OF SALES STUCK IN DEBTORS AND INVENTORY
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10-THE COMPANY AUDITOR HAS QUALIFIED OPINION OVER THE MATTER OF PROVISION FOR GRATUITY AND DISCONTUNING OPERATIONS.AND ALSO TRADE RECIEVABLES AND PROVISION FOR LOAN AND ADVANCES GIVEN TO WHOLLY OWNED SUBSIDIARY.
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11-COMPANY IS REDUCING FIXED ASSEST YEAR BY YEAR INSPITE OF CAPITAL INFUSION.
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12- PROMOTER AMRIT LAL SAH AND PROMOTERS GROUP IS CONTINUOUSLY REDUCING ITS STAKE
AND 52 % SHAREHOLDING IS PLEDGED..
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13-COMPANY HAS NOT PAID INDEPENDENT DIRECTORS SITTING FEE IN LAST YEAR.
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14-COMPANY HAS 90 CR DEBT WHICH IS EQUAL TO ITS MARKET CAP.
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15- ENTERPRISE VALUE OF THE COMPANY IS 188 CR ALMOST DOUBLE TO MARKET CAP.
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16COMPANY HAS APPOINTED RAICHAND SAH AS PLANT MANAGER WHO IS A PART OF PROMOTER GROUP ANS SSC QUALIFIED ONLY ON SALARY OF 15 LAK EQUAL TO THE SALARY OF M.D .
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17- IN LAST 5 TRADING DAYS STOCK PRICE FALL WITH HUGE VOLUME WHICH MAY BE INDIACATION OF STAKE SALE BY PROMOTERS GROUP.
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CONCLUSION:SUNDARAM MULTIPAPER IS COMPLETE AVOID AS PER MY VIEW WHICH IS FUNDAMENTAL VIEW AND DOES NOT RELATE TO PRICE RISE OR FALL.

Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

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