anyone have idea why promoters are selling shares they sold heavily this month?
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These maybe a part of their ESOPs. But need to confirm. Please speak with their Investor Relations.
I don’t think there are adequate disclosures from the management regarding many things. Some things I was not happy about:
- The concall was just a formality with no substantial information shared, just plain vanilla statements.
- The management’s comments on the business were exceedingly long with multiple vertical heads (>7-10) eating up valuable Q&A time.
- The management was also dodging specific questions regarding recent resignations and other issues in the Q&A.
- The entire concall was close to 30 minutes with management’s statements eating up almost 20 minutes, leaving only 10 minutes for QnA.
- Despite painting a rosy picture in the concalls, the promoters have constantly reduced their stake since 2017.
Basically, I learned nothing about the business after reading the concall and it only raised more questions regarding management integrity.
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Any update on growth and business improvement due to acquisition of Aparaa digital(roundsqr) in july 2022. Aparaa being a startup, was a big hope acquisition for the company. As Aparaa is in Machine learning and AI, this acquisition was being viewd in positive side.
Red flags like promoter reducing stake + MD resigning are there.
Still tracking because, it is trying to move up the value chain and offering customised services, pivot from a generic testing company. (Like a CRAMS player expanding/specialising their portfolio, spending more on R&D)
Will look for margin expansion to happen.
If any other views pls share.
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have tracking position in loss, I am confused
I could see that key personnel from acquisition RoundSqr(Apara Digital) have left Cigniti in Oct 2023. We might see a slight improvement in margin (1%) this quarter but the long term vision to cross sell Digital Engineering services to existing customers might not happen at the expected pace. Quite disappointed from that perspective.
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What’s the reason for a decrease in promoter holding?
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I agree that management commentary is too long. If I think positively, seems like company is trying to keep management ego satisfied with everyone able to speak.
In the recent concall, management clarified that 9% promoter share is reclassified as Non- promoter. further, Shareholding of PMS + DII /FII increasing. Not sure whether Screenmr is right.
And what I thought was that - CEO resigned to give the post to his Son. If that’s the case, sudden resignation may not be a concern.
P. S. Not invested. looking to see whether its a potential investment due to low PE
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Which are direct competitors to Cigniti technology in India?
Considering the super aggressive target management set during 2015-16, the result was bad. Revenue CAGR was not even 20% (the target was 50%) and no increase in margins. Still wondering what the management was thinking while publically announcing such numbers.
Forgetting the past, for now, not being able to find any particular moat for the company, might be wrong though. Let’s see how they fares especially with the new trends of AI that can significantly affect the testing landscape.
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