Sorry, I am just stating hearsay. I don’t have any facts to back it up. But I believe the person who told me this as he is well-connected in the sector. I wrote about it as a word of caution because I think I dodged a bullet here. Use your own discretion in investing. I tend to stay away from stock if the management has been involved in unethical business practices. E.g. Vakrangee.
Not only has the stock taken sound beating, it is surprising how quiet the promoters of Kellton have been. I doubt two things.
- Either they have honest intent and are trying to turn things around positively rather than promise huge targets.
- The noose around the neck has tightened enough that there is not much left to say. I don’t want to see exceptional results, just good cashflow will keep me happy.
Sometimes stock price shake your decision about company. No doubt there may be impact of capex on the NP AND EPS. But as per looking to border picture, management is looking honest and working hard to perform best in competitive environment. Even in deep search for Mr. Niranjan Chintam i didn’t find anything which goes against him. Top of that the way company strategically acquiring good foot hold in EU, USA AND SOUTHEAST ASIA. In April 18 company just acquire Plentpro https://economictimes.indiatimes.com/tech/ites/kellton-tech-acquires-planetpro/articleshow/63578224.cms.even i found that as per data analysis specially for hospital data there are very few names in which one is kellton tec.
this is my sole opinion, investing in stock market is very risky do your own research and invest accordingly.
dis; invested 1% of portfolio but will follow strict SL
I have seen Kellton hit 20pct circuits a couple of times without reason. But some investors today spoke about Kellton reducing debt this quarter. Couldn’t find information. can somebody share a link or debunk this piece as rumour?
The highlight of Infosys results is the writedowns in acquisitions.
Kellton has a ton of acquisitions and no write down yet. Companies should be forced to revalue the value of their goodwill and acquisitions. That’ll bring the facts out-no change to liabilities, but a factual haircut to assets. Just posting EPS growth with increasing debt and receivables will never impress the markets.
I’ve never understood their goodwill, receivables position and the borrowings. Dangerous combination. Some guys feel that collecting receivables anf paying off debts are very easy!
As they say on Wall Street, earnings are like an underwear. What is disclosed is interesting and what is concealed is vital.
Since acquisitions have just been in the last two years, write downs are not there yet. I cannot assume they will make that provision though.
Goodwill on the other hand is a problem alongwith piling debt.
But, my gut feeling is that Kellton can be a long term story and things will fall into place gradually. These are challenges which most small cap to largecap transitions might be facing.
Ironically, gut feelings don’t bring gains. We have to wait and watch.