Ya that could be a reason. But the constant selling by father and son is not letting the price increase. Until they have completely sold out I do not expect any up move
Not only that one. Omkar as a company has 5% stake in Lasa which i think has to be zeroed. Any how his father is keep selling. It is now less than 2%. i have invested small portion in it. Let see if we get clarity may think to raise stake. I am also following sequent which looks ok as turn around story. Waiting for Q4 result, if positive will invest in as well.
Yes you are right. One can compare NGL & Lasa as both in veterinary chem (med) business, whereas Sequent, after demerger is basically animal food business. This is what i heard this week in TV interview given by Sequent Management. After demerger it is going to be debt free. Company is turning around. This year will show profit of 35cr & management is interested in expanding to newer territory such as USA & Australia.
I have small investment in Lasa & following other 2. I may enter Sequent shortly, waiting for some market correction. NGL FY2018 result is looks like lackluster so one can catch up this company later as well if one of the above company couldn’t show any improvement. Also market is at top if one wants to enter in NGL can enter at lower level once market corrects.
Lasa got WHO-GMP CERTIFICATE.
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What to do with lasa and Omkar ???
Dear Sir,
This thread is for Lasa, will respond for Lasa only.
If you are looking for a buy / sell recommendation, sorry you wont get one here.
I would suggest another alternate. Please write down on a paper the reason why you bought Lasa. What was your return expectation and time line?
Then think of what has changed?. Did anything change from your initial thesis?. Is the change for better or worse?. That will give you an answer to buy, sell or hold.
Lasa is not for weak hearted, this is a venture by a first gen entrepreneur (or second gen if you take Omkar as son of P. Herlekar), so far he has given an impression of hardworking and committed promoter towards getting this into a bigger league. There is also a big opportunity for Lasa if it does the right move without getting into a quagmire as OSCL got itself into.
There are certain millstones around its neck though (The list is only partial)
- History - It is an offspring of OSCL, though the umblical cord is cut as per Omkar, the investing community is yet to develop full trust.
- Raw material costs rise - will it be able to generate margins promised, passing the rise to customers (The raw material is derivatives of hydrocarbons)
- Seasonality of business - One of its main product is used for de-worming livestock and is used seasonally.
- Selling by part of erstwhile promoter group (OSCL promoters).
- No clarity of funding plan and rights issue - though Omkar keeps mentioning it.
I would also recommend spending some time to go thru this thread from start - at the minimum read the posts of @valuestudent @phreakv6 @Nolan @8sarveshg @Madhurkotharay . You will get some inputs to make a decision.
Discl: Invested - The shares are now cost free, due to some trades - was able to exit and enter at right time (pure luck).
3 Likes
Dear @adityajp
One of the reasons I don’t anymore want to talk stock specific on the forum
is that I realized I really don’t know much about investing and luck made
me money in OSCL / LASA. I feel very terrible about being the person who
started the topic on this stock, I really feel the burden of responsibility
for statements I made which someone may have taken a decision on, and
understood how much more a mature an investor should be before they
actually make statements on stocks on a forum like VP. All I can say is, I
can put it down to another learning.
Having said that;
LASA is to me, making sound A but taking action B (Me; who I agree
outright, is not a well educated, mature or sophisticated investor, so
please take your decision accordingly).
Omkar of LASA promises to reduce debt, then goes for a addition of working
capital from BOB (I believe) of around 20 Crores. When asked in the
concall, why does he need more WC and taking more debt he says, no that is
not debt, just WC. Are his receivables and inventory guaranteed by the
Reserve Bank of India? Loan is a loan and he is taking on more debts. And
his infusion of WC let to what increase in sales exactly? OK, for
entertainment can also watch the coming quarter results.
He says, they are spending 5 odd percent plus of sales (recollecting from
memory) on R&D. Where is the R&D Lab of LASA? It does not exist. They
were till few months ago saying they are using OSCL R&D Lab for the moment.
Now he has said they have absolutely no ties to OSCL, so is the R&D lab at
Mr. Chairman’s house? And it is costing 10-15 Crores to do R&D there? Now
keep watching, some time later that will give a spin that it is outsourced
or some other tall or even taller story.
Then he barely has this half finished yard that he calls a factory and
already goes and acquires another company for (I guess) 20-25 crores) for
backward integration. Waah.
So, WC (Loan) facilities increased; and one more company aquired as well.
One half finished factory not even producing a minuscule of its capacity on
hand, and already into backward integration. Sorry for my language but he
wants to be overnight Ambani or something? At least a sensible person would
have fully activated the plant on hand at close to full capacity before
venturing into backward / forward integration. That would be a prudent
capital allocator and would have looked at acquisitions in 2020-2021.
I honestly would have suspected the motives of the posts of Mr. Madhur
Kotharay (being frank here, Apologies Madhur) but only for the fact that I
also know how many shares he owned in the demerger so I believe he is also
being misled. PS: By mistake LASA had made the entire shareholding list
public (so all names were in public domain) when they listed before it was
taken down at my and many other investors calling and jacking their
happiness for publishing our names and number of shares held.
Sonny also wants debts like daddy. They are not content being tension free.
Please everyone. Open your eyes.
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Father continues to sell and it looks like he won’t stop until he is done with his complete share.
35k odd shares sold between 13th - 20th. During this time price has fallen from 100 to 90. He still has 4 lakh shares left. After this disclosure interval, today it has dropped big with volume so it is safe to assume disclosure would come next week, going by price/action and past trends.
Does the market’s lasa enthusiasts have in them to absorb 6 lakh more shares of the father and brother or is this going to be a shakespearean tragedy?
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Interesting take this… would also be interesting to hear the views of @Madhurkotharay ji on the same…
seems company is giving a warning about upcoming loss of production etc… Trouble seems never ending for Lasa shareholders
No idea about this fires impact on lasa
If you had transcribed the text from that video, you could have saved us all the aural assault. Am afraid there really is nothing new in that video that is insightful and a title like ‘Catch it, Going cheap’ really demeans this forum am afraid.
As for the notification of the fire (in a neighbouring unit of another company),
I am bit surprised by the language. “severe impact”, “severe loss of production”, failure, inability etc. sounds too negative for suspension of power supply. Is this expected to last for weeks/months?
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On Lasa management part they may be right. As what i know with my limited knowledge that fire was severe & local fire brigade was unable to douse the fire & they had to call up fire brigades from other places. Since fire was unable to control, local administration of Mahad vacated nearby area of around 10km. See video link below of Zee Marathi (If you guys can understand) which says it took 48 hrs to control the situation.
There announcement does not mention if their units are damaged or not. If it is only power supply cut, it could be a matter of few weeks only.
Its about only & only one factory. Matter of 2-4 days to come to normalcy. Not more than that.
Not sure why management is sounding so negative
Unless & until Father, Brother & Son ghar ghar ki kahani is not over, stock will not regain. Moreover stock market is in a bull phase which likes only quality companies & those companies only hitting new highs. Regarding why management is negative, will come to know only after result so whoever has invested in it has to have patience.
But then there is no mention of the Insurance cover enjoyed by the company . I wonder, have there been proper covere there is no need for the company to create panic among shareholders . The company should clarify this aspect as the bankers always insist for insurance of goods and properties and most of the companies also take loss of profit policy.
Notification refers to ‘severe impact on operations’ only. It means there was no physical damage in Lasa plant itself. News reports also do not mention damage to neighbouring plants. Production loss of a few days is not that serious, but failure of running batches may be serious as it entails much more than production loss, for example, lost money on raw materials.
Disc: invested
I also think so sir ,but as per raw material are concerned. they are not degradable as they make chemical entity mainly. of course there is possibility of some delay in the order book.
I am usually a reader of this forum but having a reasonable investment in Lasa feel like sharing my rationale. and this is the second time. Last I year after being introduced to Lasa on this forum I took a large position and made a good profit when I exited near the top. It’s also good to see people mostly stick to keen observations and not wild speculations and I will try to do the same. I entered Lasa again because I don’t think the fundamentals have changed at all.
How many CEOs are PhDs in this country? I think Omkar is a sincere chap who backs his expertise on creating efficiencies through catalysts.
Stake sale by large owners are a small percentage of their overall holdings and we need to recognize that they are now public shareholders. Omkar has reiterated several times that he will not dilute his stake and has not done it yet.
Debt could be an issue if we doubt the intention of the promoters but don’t think we have seen such debt levels being reached for that they will take the money and run away. In fact, i think I read that Omkar has given about 20-30 Crloan to the company of his own funds. Don’t know whether it was zero interest though.
It’s amateurish for us to comment from the outside when an acquisition should happen and if at all. Only those running the business know where the synergies lie. Small, tactical acquisitions
The fact that the company reported the impact of the fire, the very next day, makes me think highly of the management. Critics would call them liars and full of wrong intent if they didn’t. It’s strange to see them being criticized for hyping the impact of the fire. How do we know there isn’t much impact?
In fact, this would give me a buying opportunity and I am thinking of weighing in and making Lasa 20% of my portfolio.