COMPETENT AUTO A GOOD INVESTMENT

COMPETENT AUTO LTD

(BSE CODE 531041)
🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️
THE COMPANY ,Β COMPETENT AUTOMOBILES CO . LTD . (CACL)Β IS A PART OF DELHI BASED COMPETENT GROUP , PROMOTED BY . RAJ CHOPRA. THE COMPANY IS A PROFIT MAKING COMPANY SINCE INCEPTION AND ENGAGED IN AUTOMOBILES BUSINESS .
πŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈ
PRESENTLY THE COMPANY HAS ITS PRESENCE AS A DEALER OF MARUTI SUZUKI IN DELHI , HARYANA AND HIMACHAL PRADESH . IN DELHI THE COMPANY HAS 5 SHOWROOMS AND 3 WORKSHOPS , IN HARYANA 2 SHOWROOMS AND A WORKSHOP AND IN HIMACHAL PRADESH 2 SHOWROOMS AND 2 WORKSHOPS.
πŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈ

COMPETENT STATUS IS RE -AFFIRMED EVERY YEAR AT THE ALL INDIA MARUTI DEALERS ‘ CONVENTION ,THE COMPANY BAGS MAXIMUM NUMBER OF AWARDS IN ALL CATEGORIES. CHIEF AMONG THESE AWARDS ARE THOSE FOR BEST SALES , SERVICE AND CUSTOMER SATISFACTION .
πŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈ
COMPETENT S SERVICES HAVE , IN THE PAST CONSISTENTLY WON THE PRIMARY AWARD THAT REALLY MATTERS TO ANY ORGANIZATION PROVIDING SERVICES – THE APPROVAL OF THE CUSTOMER .
πŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈπŸ›οΈ
AS A TESTIMONIAL TO THIS , COMPETENT HAS ENJOYED THE MOST REPEAT CUSTOMERS AMONG MARUTI DEALERS THE COMPANY HAS SOLD MORE THAN 2,50,000 VEHICLES AND THE NUMBERS ARE GROWING YEAR ON YEAR .(COMPANY SITE)
⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️
AS WE KNOW MARUTI IS AN EVER GROWING COMPANY AROUND THE WORLD AND LEADER IN CAR SEGMENT IN INDIA.
EACH YEAR MARUTI BRONGS A NEW MODEL AND THAT IS SOLD IMMEDIATELY.
AS PER LATEST REPORT MARUTI BALENO MADE HIGHEST SALES EVER.

ITS ASSOCIATION IS VERY POSITIVE FOR A COMPANY WHICH CONSISTENTLY MAKING PROFIT.

SOME FUNDAMENTAL FACTS:
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPETENT HAS 75% PROMOTERS SHAREHOLDING, WHICH EVERYONE DESIRE IN STOCK MARKET.
🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️
NO DII AND FII HAS HOLDING WHICH CONFIRMS THAT PRICE WILL APPRECIATE FASTLY WHEN GOT COVERAGE.
🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️
COMPETENT MARKET CAP ONLY 120CR WHICH IS LESS THAN EVEN QUARTERLY SALES WHILE BOOK VALUE IS 189 CR.
🏞️🏞️🏞️🏞️🏞️🏞️🏞️🏞️🏞️🏞️🏞️🏞️🏞️🏞️
COMPETENT HAS TOTAL ASSEST 239CR
WHILE SALES 1181 CR MEANS SALES TO ASSEST 5 TIMES.
🏘️🏘️🏘️🏘️🏘️🏘️🏘️🏘️🏘️🏘️🏘️🏘️🏘️
COMPETENT SALES GROWTH IN LAST 2 YEARS 27.81% EPS GROWTH 21%.
πŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈ
CURRENTLY ITS TRADING AT PE OF 7.80 WHILE INDUSTRY PE IS 39.
πŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈπŸ—οΈ
COMPETENT NET SALES PER SHARE IS 188 WHICH IS ALSO MORE THAN ITS MARKET CAP.
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPETENT CONSISTENT PERFORMED IN LAST MANY YEARS PAID DIVIDEND TO SHAREHOLDERS AND NEVER MADE LOSS.
πŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈ
COMPANY HAS MORE PLANS TO OPEN SHOWROOMS IN COMING YEAR.
CONSIDERING MARUTI GROWTH COMPETENT CANT BE IGNORED FOR LONG TIME.
🏰🏰🏰🏰🏰🏰🏰🏰🏰🏰🏰🏰🏰
CONSIDERING ABOVE FACTOR AND GROWTH IN AUTOMOBILES SECTOR I THINK IT CAN BE MULTIBAGGER IN FUTURE AND AT CURRENT PRICE ITS CHEAP AND BEST BUY.
THERE IS NO DOWNSIDE POSSIBLE.
http://www.moneycontrol.com/news/business/maruti-suzuki-sales-rise-8-in-march-to-1-39-lakh-units-2251125.html

DISCLAIMER :I AM HOLDING THIS STOCK.

VISESH INFO JUST A GARBAGE

Many Mmb operators engaged over this to trap retailers.
πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
LETS START FROM PROMOTER SHAREHOLDING WHICH IS 46% AND 90 % OF WHICH
ARE PLEDGED.
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VISESH HAD PAID DIVDEND IN 2006Β  WHEN STOCK PRICE WAS 55.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
COMPANY HAS ISSUED BONUS IN 2013 , I DON’T THINK HOW A LOSS MAKING
COMPANY ISSUED BONUS AND WHY AND ALREADY THEIR COST OF CAPITAL IS TOO
MUCH.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
ONLY THOSE COMPANY SHOULD GIVE BONUS WHICH ARE PROFITABLE AND THEY CAN
FURTER INCREASE EPS.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
COMPANY IS IN SERVICE SECTOR BUT THER COST OF GOODS SOLD IS ALMOST
EQUAL TO SALES SO
IT SHOWS THAT HOW POOR MANAGEMENT VISESH HAVE.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
WHEN COMPANY HAD SALES OF 110CR ITS EMPLOYEE COST WAS 3.61CR
IN 2011 WHEN SALES BECAME 176 CR ITS EMPLOYEE COST WAS 1.02CR.
WHEN SALES WAS 154 CR ITS EMLOYEE COST WAS 2.16 CR.
WHEN SALES WAS 175 CR IN 2014 ITS EMPLOYEE COST WAS 2.86 CR.
IN 2016 WHEN SALES ARE 261 CR ITS EMPLOYEE COST IS 1.83 CR ONLY.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
IN 2016 COMPANY HAS EARNED 6 CR OTHER INCOME WHICH IS UNKNOWN.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
LAST 3 YEARS COMPANY IS NOT PAYING TAXES.
SINCE 2011 TO 2016 THEY HAVE RAISED HUGE QTY OF SHARESΒ  FROM THE MARKET
BUT THE SALES LEVEL IS SAME AS WHAT WAS EARLIER .SO HOW THE MANAGEMENT
USED THOSE CAPITAL AND WHERE?
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
SO I TELL THEY RAISED MONEY FROM MARKET AND USED IN INVESTMENT WHICH IS 66 CR.
IF YOU CONSIDER INVENTORY LEVEL IN LAST 3 YEARS AND CASH BALANCE ITS
SAME FROM 2014 TO 2016.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
COMPANY FIXED ASSEST HAS REDUCED FROM RS 298 CR TO RS 90CR EVEN IF
MANAGEMENT HAS ISSUED CAPITAL SO WHY FIXED ASSEST REDUCED DRASTICALLY.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
COMPANY HAS 61 CR CONTINGENT LIABILITIES WHICH IS EQUAL TO ITS FIXED ASSEST.
COMPANY HAS NOT SUBMITTED ANNUAL RETURN AND PAID FEES ON INCREASED
AUTHORISED SHARE CAPITAL.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
i. Company had increased its authorised capital during the Financial
Year 2010-11 to 2012-13, however, due to technical issues necessary
forms along with the fees w.r.t. increase in Authorised Capital could
not be filed and paid. Meanwhile the schedule of fees was increased as
per the companies act, 2013. However, the authorised capital was
increased prior to the applicability of companies act, 2013.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
The
company has filed a Writ Petition bearing No. WP(C) 5199 of 2015 before
the Hon”ble High Court of Delhi challenging the applicability of
provisions prescribed under Para 3 of Table B under Registration of
Offices and Fees Rules 2014. Due to this reason Annual return could not
be filed. Hence, Directors ofΒ  company are not disqualified for
re-appointment in this company and are eligible for appointment in any
other company as a Director in terms of Section 164(2) of the Act.(From annual reports)
⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️
ii. Suspension of Sign domains Operations by ICANN: THE Company is one
of the accredited Registrars, however due to certain inadvertent
non-compliance of the Accreditation Agreement executed by the Company,
which could not be cured within the stipulated time; hence ICANN had
suspended the Domain Name Registration for a period of three months.
The non-compliance was cured and the suspension has been revoked and
THE company had again started the Domain Name Registration business.
⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️
AUDITOR”S REPORT

The observations made in the Auditors” Report and Secretarial Auditor”
report are self – explanatory and do not call for further comments.
Report of the Secretarial Auditor is given as an Annexure-II which
forms part of this report, however, as regards qualifications made by
the Auditors” in their report THE directors state as under:
πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
1.Β  The funds raised by the Company from GDR issue during F.Y. 2007-08
were kept in fixed deposit account with Banco Efisa, Lisbon, Portugal,
as the said amount was to be deployed in terms of INFORMATION
MEMORANDUM of the GDR issue. During the F.Y. 2008-09, Banco Efisa, the
Bank in Portugal, wrongly debited an amount of USD 8,883,210.75 out of
the balance lying in the Company”s Account with the Bank.Β  The Company
has denied and disputed this debit and had initiated legal action under
criminal jurisprudence of Portuguese Law. During the criminal
investigation, several new facts/documents have come to our knowledge
and based on the evaluation of new facts/documents by Barristers,
Senior Advocates and investigation carried out of in India, London and
Portugal; THE Company has initiated a strong civil action for recovery
of USD 8,883,210.75, alongwith interest, against Banco Efisa and its
Holding Company, wherein our Portuguese advocates confirm that the
chances of recovery are very high. The suit filed by THE company
before Portuguese courts is presently pending adjudication.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
DISCLAIMER :The blog aim to share important information to protect investors.

FIRST MULTIBAGGER PICK PIX TRANSMISSIONS FOR BLOGGER

Multibagger pick Pix Transmissions
First given by me @65 last year.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Pix Transmissions Ltd., is the leading manufacturer of Belts and
related mechanical Power Transmission products in India. The Company
features state-of-the-art Belt manufacturing units as well as a
completely automated Rubber Mixing facility in Nagpur.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
PIX Transmissions Ltd. enjoys significant brand equity in the Power
Transmissions industry, with strong local as well global presence. The
company has overseas subsidiary operations in Europe, and Middle-East,
in addition to over 250 committed Channel Partners in over 100
countries worldwide.
ISO/TS 16949:2009, ISO 14001, and OHSAS 18001
ATEX certification from Germany, for its entire range of
fire-resistant antistatic (FRAS) Belts.
Prestigious ‘Niryat Shree’ award conferred by the President of India
for achieving outstanding performance in the Export for products
related to our Industry.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Special awards from several Business Associations and Governmental
agencies in recognition for best Export performance, consistently for
the past several years.
(Source:Website)
⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️ ⛰️
Financial Performance
Current market cap:184 cr
Book value
2015:106
2016 :112
2017:123
Book value growth : 16 %
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Sales
2015:203 cr
2016:217cr
2017:236 cr
Sales Growth : 16 %
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Ebidta
2015:35 cr
2016:33 cr
2017:49 cr
Ebidta growth: 40%
πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
Net profit
2015 :3.45 cr
2016 : 3.66 cr
2017 : 14.7 cr
Net profit growth: 326%
πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
Eps
2015:2.34
2016:2.38
2017 : 12
Eps growth :400%
If same rate of eps growth is maintained then we can see 20 plus eps in 2018.
πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
Market cap to sales ration each year increasing.
COMPANY has paid 40 percent average dividend in last 3 years.
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COMPANY has generated huge reserves in last 3 years from 140 to 151 cr now.

COMPANY is increasing fixed assets which is equal to market cap from 139 to 173.
Which resulted in improvements in operation.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Interests payment is going down each year from 19 cr to 14 cr.
Last 5 years cash flow from operations is always positive.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
PROMOTERS have 61 percent holding while INSTITUTIONAL holding negligible
πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
COMPANY credit rating awarded A3 by care.
Last year highest traded pe was 20 but currently trading at pe of 12.
If It traded at pe of 20 then price should be 240.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Last year highest trading price to book was 1.25 but currently at 1.07

LAST YEAR EV to EBIDTA was 7 but currently 5.5.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
COMPANY has huge client base in india as well as outside India.
Some of Big names like L&T, Tata, Reliance, Indian government also.
I am expecting Pix transmission 300 plus in 2018.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
DISCLAIMER :I am holding the stock

Wanted to know PEG RATIO ,

πŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈπŸ”οΈ
P/E RATIO = PRICE PER SHARE / EPS
PEG RATIO =
P/E RATIO / EARNINGS GROWTH RATE
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPANY A PRICE PER SHARE = 46
A COMPANY EPS THIS YEAR = 2.09
A COMPANY EPS LAST YEAR =
1.74
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPANY A. CURRENT P/E RATIO = 46 / 2.09 = 22
COMPANY A EARNINGS GROWTH RATE = (2.09 / 1.74) – 1 = 20%
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPANY A PEG RATIO = 22 / 20 = 1.1
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPANY B PRICE PER SHARE = 80
COMPANY B EPS THIS YEAR = 2.67
COMPANY B EPS LAST YEAR = 1.78
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPANY B CURRENT P/E RATIO = 80 / 2.67 = 30
COMPANY B EARNINGS GROWTH RATE = (2.67 / 1.78) – 1 = 50%
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
COMPANY B PEG RATIO = 30 / 50 = 0.6
πŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈπŸ–οΈ
THE LOWER THE PEG RATIO , THE MORE THE STOCK MAY BE UNDERVALUED GIVEN ITS EARNINGS PERFORMANCE. THE DEGREE TO WHICH A PEG RATIO VALUE INDICATES AN OVER OR UNDERPRICED STOCK VARIES BY INDUSTRY AND BY COMPANY .
πŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈ
PEG RATIO BELOW ONE IS DESIRABLE .
BUT THIS IS NOT ONLY CRITERIA FOR STOCK SELECTION.
BECAUSE PEG RATIO DEPENDS ON HISTORICAL FACT WHICH MAY BE WRONG IN FUTURE.
πŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈ
SUPPOSE INDUSTRY MAY FACE RECESSION or INPUT COST GO HIGH DUE TO LESS SUPPLY .
OR GOVT REGULATION IMPACT ON INDUSTRY .
πŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈπŸ•οΈ
OUTPUT DEMAND DECREASES IN THE COUNTRY ,TECHNOLOGY UPGRADATION IMPACT ON INDUSTRY ETC.

Great company is not great Stock. Suzlon energy dont expect to be Multibagger

πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
THE GREAT COMPANY IS NOT ALWAYS A GREAT STOCK ,AND DOES NOT PROVIDE
GREAT RETURN.

πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
FINANCIAL REVIEW(CONS)

-Company has many subsidiaries and many of them make loss each year
that’s why suzlon performance is not improving .
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-The stake of promoters has reduced due to allotment of shares to non promoters. And 99% of Shares Are pledged.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Statutory auditor has qualified in audit report on some matters like
delay filling of Ecb and evaluation of performance of independent
directors.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Last 5 years sales growth is minus 11% .
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Company stands in very low margin business segment,if you see last 5
years sales and expenses no improvement can be seen.,However last year
some cost control measure has been taken resulting increased margin.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Most of company profit goes into tax and interest due to heavy debt
portion consisting along with equity as well as Company has issued Gdr and Adr but volume of sales is reducing each year.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ

-Last dividend was paid in year 2008 and from then neither dividend
paid nor capital gain in terms of price given to shareholders.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Each year sales volume coming down inspite of equity and debt
portion increasing.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-in last 5 years company has not created any reserves
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
– In last 5 years no improvement in debtor turnover and inventory turnover.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-IN last 5 years return on capital and net worth is negative.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ

Business Review(PROS)
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-The Suzlon Group is one of the leading renewable energy solutions
providers in the world with a presence across 19 countries in Asia,
Australia, Europe, Africa, North and South America.
With over two
decades of operational track record, the Group has a cumulative
installation of approximately 15.5 GW of wind energy capacity, over
7,500 employees with diverse nationalities and world-class
manufacturing facilities.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Suzlon, as a wind energy solutions company has a large in-house
Research and Development (R&D) set-up in Germany, the Netherlands,
Denmark, and India.
Approximately 9.50 GW of the Group’s installations
are in India, which makes up for ~36% of the country’s wind energy
installations, making Suzlon the largest player in this sector.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
From being a premier wind turbine supplier, Suzlon has recently
forayed into the solar energy solutions space. The Group,
headquartered at Suzlon One Earth in Pune, India, is comprised of
Suzlon Energy Limited and its subsidiaries.
Pioneering the ‘Concept to Commissioning’ model in the wind energy
industry, Suzlon has opened the market to new customer segments.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
The
company heavily invests in R&D to ensure that it capitalizes on all
aspects concerning renewable energy, and stands at the forefront of
manufacturing this technology to harness the wide spectrum of
renewable energy solutions available today.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Suzlon key market are Brazil,China,North America except india.
China is the strong market for suzlon.
but now a days China itself facing economical survival.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Key Management Includes J.p.chalasani and Rakesh Sarin and both have
enough experience
In power sector.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-company has recently started its 2 manufacturing units in pondecherry.
-From this year company has started to keep tight control on fixed
costs and debt and also reduced debts too much.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Company took one more step with the installation of newest product
from 2.1 MW range, the S111 120m prototype, at
Naliya, Gujarat.
This is the latest variant of successful
S97 120m and S111 90m products which combines the
larger blade of S111 with the higher hub height and hybrid
tower of S97.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
The S111 120m showcases its ability to make
low wind sites viable, increase efficiency, and enable energy
security, affordability and reliability.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ

-The renewable industry recorded a
growth of 18% CAGR in 2015 and is expected to attract
US$5.86 trillion worth of investment between 2014-2035.
-CARE upgraded Suzlon to an investment
grade rating of BBB- for its long term loans, fund based
working capital limits and SBLC backing AERH Bonds and
A3, for its non-fund based working capital and proposed
commercial paper.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Suzlon forayed into the solar energy market with projects
of 210 MW by Telangana State Utility Southern Power
Distribution Company of Telangana Limited (TSSPDCL).
Won through competitive bidding, the project is to be
fulfilled at six sites across the state through six Special
Purpose Vehicles (SPVs
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ<πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ

-In last few years Many development has been done by suzlon management
and govt thrust on make in india looks promising for Suzlon energy
.
-During the year under review, the Company decided to embark further into the
renewable energy sector by venturing into solar space.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
The Company has
won bids for 515 MW solar power projects across
four states namely Telangana, Maharashtra, Rajasthan and Jharkhand,
out of which power purchase agreements for
340 MW have been signed. Post March 31, 2016, the Company signed a
Share Subscription and Shareholders Agreement
with CLP Windfarms (India) Private Limited (β€œCLP) and SE Solar
Limited, a subsidiary of the Company for setting up 100 MW
solar power project in the State of Telangana and eventually sale of
SE Solar Limited to CLP.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ

Conclusion(:Last years shows some improvement in bottom line but not
on top line inspite of Huge capital infusion may be through Equity,Debt,ADR,GDR and 99% Pledged Shares.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Suzlon current eps 0.50 and trading @ 18 if we see
in 2009 suzlon eps was 1.5
And market price was 26.
So in current situation if suzlon earns eps of 1 it can
touch 25 or 30 in one year
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
but if you are thinking
It as multibagger then you are cheating with yourself
DISCLAIMER :I am not holding Suzlon energy

RETAILERS BE AWARE FROM QUARTERLY RESULT MANIPULATION

πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
1:JSWENERGY POSTED VERY BAD RESULT
STOCK FALL
NEXT DAY MOTILAL OSWAL GIVEN TARGET OF 85
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
2:DLINK POSTED BAD RESULT

AFTER 2 DAYS ICICI GIVEN TARGET OF 140, SAME AS WAS BEFORE.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
3:MT EDU POSTED BAD RESULT
STOCK PRICE FALL
ARIHANT CAPITAL GIVEN TARGET 109
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
4: TRIDENT POSTED GOOD RESULT
STOCK FALL
NO BROKERAGE GIVEN TARGET
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
5:PRESSMAN POSTED GOOD RESULT
STOCK PRICE FALL
NO BROKERAGE TARGET
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
6:BLISS GVS POSTED OUTSTANDING RESULT

STOCK PRICE FALL
NO BROKERAGE GIVEN TARGET
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
7:JSW STEEL POSTED GOOD RESULT
STOCK PRICE FALL
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
8:MANGALAM DRUG POSTED GOOD RESULT
STOCK PRICE FALL UPTO 180
NO BROKERAGE GIVEN TARGET AFTER RESULT.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
LAST QUARTER
SHREYAN IND POSTED GOOD RESULT

STOCK PRICE FALL 10 PERCENT AND TOUCHED 125
THEN AFTER MADE NEW HIGH OF 200 IN THREE MONTHS.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
TOKYO PLAST POSTED GOOD RESULT
STOCK PRICE FALL UPTO 100
NO BROKERAGE GIVEN TARGET
WITHIN 3 MONTH TOKYO PLAST TOUCHED 150.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
STAR PAPER POSTED GOOD RESULT
STOCK PRICE FALL UPTO 140
WITHIN 3 MONTH STAR PAPER 200
NO BROKERAGE GIVEN TARGET
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
OVERALL CALCULATIONS IS THAT BROKERAGE WANTS RETAILERS INVEST IN BAD RESULT POSTED COMPANY SO THAT THEY CAN PULL THEIR CAPITAL OUT, THEIR TARGET NOT GOING TO BE ACHIEVED
AND
DIVERT ATTENTION FROM GOOD RESULT POSTING COMPANY.
THEY WANT WE LOOSE AND THEY GAIN.

NOW ONLY NEEDS TO SEE HOW MANY READ AND BELIEVE THIS.

KELLTON TECH RISK CANT BE IGNORED

BUSINESS REVIEW

1;KELLTON TECH IS AN INDIAN IT COMPANY ENAGAGED IN DIGITAL TRANSFORMATION WHICH IS A
WHOLE SCALE CHANGE TO FOUNDATIONAL COMPONENTS OF A BUSINESS .

OPERATIONS TO BASIC INFRASTRUCTURE
IT COVERS UP EVERY ELEMENTS OF ENTERPRISE FROM
FINANCE,MARKETING,HUMAN RESOURCE,
OPERATIONS.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
2;DIGITIZATION IS THE BUZZWORD IN INDIA ,RECENTLY GOVERNMENT OF INDIA ALSO STEP FORWARD IN THIS FIELD TO IMPROVE BUSINESS AND REDUCE CORRUPTION.

DIGITIZATION SAVES TIME AND EFFORT OF BUSINESS AND ALSO COST FOR THE BUISNESS CONSIDERING THIS KELTON HAS GOOD BUSINESS MODEL AND FUTURE LOOKS GOOD.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
3;COMPANY IS CURRENTLY DEPLOYING TWO I0T BASED PROJECTS AND AS PER FORECAST GLOBAL I0T MARKET WOULD GROW TO $1.7 TRILLION TILL 2020.
SINCE KELLTON IS ALREADY STEPPED IN IN THIS FIELD SO IT COULD GET MORE BENEFITS IN COMING DAYS.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
4;IT WON THE MOST PRESTIGIOUS AWARD β€˜DIGITAL INNOVATION IN SERVICE INDUSTRY IN INDIA’
AS WELL AS’ EMERGING IT COMPANY OF INDIA’
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸŽ†πŸŽ†πŸŽ†πŸŽ†
5;KELLTON HAS 40 CUSTOMERS FROM FORTUNE 500 LIST AND THREE LARGEST E-COMMERCE PLAYER IN INDIA INCLUDING INDIAN AIRLINES.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
6;KELLTON DEVELOPED CLOUD –HOSTED MHEALTH PROGRAM IN UP WHICH ENABLED 2G MOBILE TO RECORD DATA ON REAL TIME AND GOT SUCCESS
πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
7-KELLTON TECH IS A MOBILE APP PARTNER FOR NASSCOM EVENTS.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
MANAGEMENT REVIEW

1;BOARD OF DIRECTORS

KRISHNA CHINTAM MD WHO IS BACHELOR IN ELECTRICAL ENGINEERRING AND MASTER IN ELECTRICAL ENGINEERING FROM VIRGINIA TECH.HE HAS 20 YEARS EXPERIENCE IN INFORMATION TECHNOLOGY.

NIRANJAN CHINTAM CMD GRADUATED FROM WHARTON BUSINESS SCHOOL AND HOLDS ENGINEERING DEGREE IN ELECTRICAL.HE SPEARHEADED EXPANSION DRIVE OF KELLTON TECH
AND PUT IT ON GLOBAL IT MAP.

KARNJIT SINGH WHO HAS 23 YEARS EXPERIENCE WORKING WITH LARGE ENTERPRISES ON CONSUMER INTERNET APPLICATION.
HE WAS DIRECTOR OF JDA SOFTWARE FOR PRODUT DEVELOPMENT BEFORE KELLTON TECH
.πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
THE BOARD STURTURE CONSIST OF MORE THAN HALF OF INDEPENDENT DIRECTOR ONE OF THE BEST PART OF CORPORATE GOVERNANCE.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
2;COMPANY HAS CONSTITUTED VARIOUS COMMITTEE AS PER COMPANIES ACT 2013 WHERE INDEPENDENT DIRECTORS FORM MAJORITY.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
3;ONE NEGATIVE THINGS IS NON PAYMENT OF DIVIDEND WHICH MAY BE DUE TO COMPANY BELIEFS ON GROWTH WHICH FINANCIAL STATEMENT SHOWS.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
4;KELLTON TECH HAS MANY SUBSIDIARY IN MANY COUNTRIES LIKE CYBERWORLD SOLTION INC,
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
PROSOFT TECHNOLGY,VIVOSΒ PROFESSIONAL,EVANTAGE SOLUTION,SUPREMESOFT INC.
IN LAST YEAR COMPANY PROFITABILITY REDUCED DUE TO NON-PERFORMANCEΒ OF SUBSIDIARY
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
5;COMPANY PERFORMANCE MAINLY DEPENDS ON SUBSIDIARY ,IF ANY OF THSES DID NOT PERFORM WELL THEN PROFIT MAY COME DOWN RESULTING SHARE PRICE ALSO.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
6- KELLTON PROFIT GROWTH IN 2016 WAS 10% AND KMP SALARY GROWTH 6.5%
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
FINANCIAL REVIEW

1;KELLTON QUARTERLY PERFORMANCE EACH YEAR KEEP IMPROVING YEAR BY YEAR TOP LINE WITH BOTTOM LINE AND IN LAST 3 YEARS SLAES GROWTH IS 95%
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
2;TO BOOST REVENUE COMPANY HAS INVESTED IN CURRENT ASSEST INCREASING DEBTOR DAYS.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
3;IN LAST FEW YEARS COMPANY HAS INCREASED EXPENSES ON EMPLOYEE DUE TO WHICH PRROFIT HAS BEEN IMACTED.COMPANYΒ HAS ALSO INCREASED 21%
REMUNERATION OF C.E.O KARNJIT SINGH THIS YEAR AS WELL AS OTHER EXPENSES ALSO INCREASED
.πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
4;FINANCE COSTS HAS ALSO BEEN INCREASED DUE TO BUSINESS EXPANSION. AND EXPENDITURE ON SUBSIDIARY.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
5;BASIC EPS HAS BEEN INCREASED FROM 1.79 IN 2014 TO 6.96 WHICH IS GOOD SIGN.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
6;RETURN ON NET WORTH AND CAPITAL BOTH IMPRESSIVE.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
7;CASH FLOW FROM OPERATIONS IS POSITIVE BUT DUE TO INVESTMENT IN SUBSIDIARY OVERALL NEGATIVE.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
8;IN LAST TWO YEARS COMPANY HAS RAISED BORROWING FOR EXPANSION DUE TO WHICH ENTERPRISE VALUE BECOME HIGH.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
CONCLUSION;
RISK
(1;KEY RISK HOWEVER INDIAN IT IS ON GROWTH PATH BUT DUE TO MANY SUBSIDIARIES BUSINESS COULD FACE RISK IN FUTURE IF ONE OF THEM DID NOT PERFORM WELL.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
2;COMPANY HAS TO CUT COST ON EMPLOYEE BENEFIT AND OTHER EXPENSES TO MAINTAIN PROFITABILITY.)
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
MY VIEW IS POSITIVE ON KELLTON TECH CONSIDERING ITS PAST PERFORMANCE AND RETURN ON NET WORTH and CAPITAL.

ONE CAN MAKE INVESTMENT AFTER CONSIDERING THEIR FINANCIAL ADVISOR.
DISCLAIMER :I AM NOT HOLDING KELLTON TECH.

UJAS ENERGY MULTIBAGGER OR MULTIBEGGER

UJAS ENERGY THE MOST CONTROVERSIAL STOCK OVER SOCIAL SITES.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
FINANCIAL REVIEW ONLY
UJAAS ENERGY FACE VALUE ONLY RS 1 STILL MANY PEOPLE NOT TAKING CARE OF THIS.

NET SALES PER SHARE IS 10 AS COMPARED TO MARKET PRICE OF 38
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
1-UJAS ENERGY SALES GRAPH IN LAST 4 YEARS
YEAR 2013
SALES ;242 CR
YEAR 2014
SALES; 525 CR
YEAR 2015
SALES; 111 CR
YEAR 2016
SALES;277 CR

IN LAST 4 YEARS COMPANY SALES HAS SO MUCH FLUCTUATION SO GROWTH AND PREDICTION OF PRICES FOR FUTURE MOST DIFFICULT.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
2-COMPANY HAS SHOWN SALES FROM 111 CR TO 277 CR BUT INVENTORY TURNOVER IS FOR THE SAME PERIOD IS 1.74 AND 3.39 .IF YOU COMPARE THE SALES OF 2013 WHICH WAS 242 CR AND INVENTORY TURNOVER 9.50 BUT IN 2016 SALES IS MORE 277 CR BUT INVENTORY IS 3.39. WHY?
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
3;IN LAST 2 YEARS TOTAL SALES IS 384 CR AND TOTAL INVENTORY PLUS DEBTORS IS 345 CR.
WHY?
IF COMPANY MADE SALES THEN WHY SALES AND INVENTORY PLUS DEBTORS IS ALMOST SAME.
SUPPOSE GOVT AND PSU ARE ITS CLIENTS THEN WHY THEY DID NOT CARRY GOODS AND MADE PAYMENT IN LAST 2 YEARS.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
4;IN LAST 2 YEARS INTEREST PLUS TAX IS 20 CR IN 2015 COMPARE TO PROFIT OF 11 CR AND IN 2016 37 CR COMPARED TO PROFIT OF 20 CR.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
5;IN LAST 3 YEARS DEBTOR DAYS HAS GONE FROM 87 TO 177 IN 2014,82 IN 2015 AND FINALLY 117 IN 2016.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
6;AUDIT COMMITTEE IN 2015 HAS RECOMMENDED AN EMPLOYEE TO BE INTERNAL AUDITOR SHOWING INEFFICIENT AUDIT COMMITTEE,HOWEVER THIS WAS NOT APPROVED BECAUSE QUESTION CAN BE RAISED FROM REGULATORY AUTHORITY.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
7;IN 2015 OUT OF TOTAL TRADE RECEIVABLE 2.79 CR IS FROM DIRECTOR IN WHICH THEY ARE INTERESTED.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
8;MANY PEOPLE QUESTIONING WHY DID PROMOTERS NOT SELL @52
SO ANSWER IS THERE IS SEBI IF PROMOTERS DID SO THEY COULD BE HELD UP BY SEBI DIRECTLY.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
9;NO CHANGES IN BOOK VALUE IN LAST 3 YEARS ALMOST SAME
πŸ’₯πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
10;IN 2013 FIXED ASSEST TURNOVER WAS 5.80 BUT IN 2016 IT IS 1.39 ONLY.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
11;ALL THREE SUBISDIARIES ARE YET TO COMMENCE ITS OPERATION CAN BE FOUND FROM 2014 ANNUAL REPORT TO 2016 ANNUAL REPORT.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
WHEN THEY COMMENCE NO EXPLANATION AVAILABLE.

12: WE CAN SEE UJAS ENERGY DAILY GETTING ORDER FROM DIFFERENT PLACES BUT THE PROBLEM IS EXECUTION.
THE MAIN PROBLEM IS SOLAR SECTOR HIGHLY COMPETITIVE AND HAVING VERY THIN MARGIN, EVEN PROMOTERS HAVE ACCEPTED THIS FACT.
ALL COMPANY EARNING GOING TOWARDS FINANCE COST, EMPLOYEE COST, OTHERS EXPENSE.
SHAREHOLDERS GET NOTHING
NEITHER GOOD DIVIDEND NOR BONUS.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
13:ANOTHER IMPORTANT THING AS I MENTIONED ON MY FACEBOOK PAGE, BE CAREFUL WHEN PROMOTERS SELL STAKE AND COMPANY POST BAD RESULT.
SAME IS GOING ON IN UJAS ENERGY.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
14:LAST QUARTER PROMOTERS SOLD STAKE INFORMING INVESTORS THAT THEY ARE DOING IT FOR WORKING CAPITAL BUT AS PER LATEST BALANCE SHEET SHORT TERM BORROWING INCREASE 7 TIMES. SO WHERE THE MONEY GONE?
ALSO INVENTORY BECOME DOUBLE.
πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
15:PROMOTERS HAD THE OPTION OF PLEDGE OF SHARES LIKE STAR PAPER, OMKAR CHEMICAL AND OTHERS STOCK BUT THEY SOLD OR MAY BE THEY TRIED BUT FINANCIAL INSTITUTIONS DID NOT ALLOW

πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†πŸŽ†
(CONCLUSION: ITS MY PERSONAL OPINION AND I M NOT HOLDING UJAS ENERGY AND GIVEN EXIT IN FEB @38
BEFORE TAKING ANY DECISIONS CONTACT YOUR ADVISOR.

WHY AM I BULLISH ON STAR PAPER.

πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯ πŸ’₯
SALES IN 2016 : 272CR
SALES IN 2017 :313CR
SALES GROWTH :15%
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
EBIDTA IN 2016 : 26.62 CR
EBIDTA IN 2017: 61CR
EBIDTA GROWTH : 129 %
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
EPS IN 2016 : 10.57
EPS IN 2017 : 30
EPS GROWTH : 157%
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
HIGHEST TRADED PE IN 2016 : 12.5
HIGHEST TRADED PE IN 2017 : 6.48
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
HIGHEST TRADED P /B IN 2016 :4
HIGHEST TRADED P/B IN 2017 : 2.85
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
BOOK VALUE IN 2016 :41
BOOK VALUE IN 2017:68
BOOK VALUE GROWTH : 65%
EXPECTED BOOK VALUE FOR 2018: 112
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
IF STAR PAPER TRADE AT PE OF 12.5 THEN AS PER CURRENT EPS PRICE SHOULD BE 375
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
IF STAR PAPER TRADE AT PRICE TO BOOK OF 4 THEN EXPECTED PRICE SHOULD BE 272.

πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
EXPECTED EPS FOR FY 2018 IF AT LEAST 50 % WE ASSUME THEN EPS COMES AROUND 45.
THEN AS PER CURRENT PE PRICE SHOULD BE 540 TILL 2018 CONSIDERING PE OF 12.
πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯πŸ’₯
EXPECTED PRICE AS PER BOOK VALUE SHOULD BE 448 TILL 2018.
DISCLAIMER :I AM HOLDING STAR PAPER.

How a company turns into penny stock.

HOW A COMPANY TURNS PENNY STOCK
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
Reason:
-Corporate governance means best business practices
How to define

Recently we have heard About Shilpi cable
Company didnt disclose why insolvency petition filed?
Why they removed key management?
Why they want bonus issue when already so much problems?
How company sales increases drastically as well as debtor also.
And many more issues.

This is called bad governance.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Promoters mismanagement
Example:
Satyam computer
Financial tech
Treehouse
Amtek Auto
-Technology Change
One of The main Factor is also technology upgradation
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Increasing Debt and misallocation of that debt Conversion of Debt into Equity
Example-Guj Nre Koke
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Misjudging of Competitor Strategy
Suppose Two companies operating in Same ind and one is using Latest Technology and other Obsolete technology
then Second One loose thier business compared to First.

Rcom, Idea
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Resignation Of KMP
Intellectual Property Is also an important part of Company.
Certain change in Directorship can destroy any company.
πŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈπŸ—―οΈ
-Lack of Code of Conduct
Eample-SRS
-Insider Trading(Syncom Formula)
-SustainanilityΒ Issue