Answers are below. But first, they are opinions and may be right or wrong.
Ethics: I believe they are ethical people. I have seen ethical people get into problems and unethical people get into problems. It is the approach that one uses to come out of problems that determines their future (next 30-40 years professional and personal career and where they spend their time, with friends and family or in courts) both the Herlekar’s seem to value their quality of life and to my opinion will not risk it for some extra money. They have answered their personal values question with selling their holding but not doing anything major wrong. The shareholders have been rewarded for keeping faith in OSCL + LASA with the de-merger.
Aggressive: Yes, Omkar is aggressive, and I liked it. I don’t want a patsy running my company, neither do I want a patsy running a business I invest in. He is a very decent person though.
Omkar Herlekar is a professional and professionally respected guy, and is very focused on the business.
Omkar seems to have very well understood the real cost of debt. We know, their family lost nearly half their shareholding in a listed company. Now that it has been said publicly by them, I can also mention that Omkar also said in the meeting as well that, he will wipe out LASA’s debt very soon. That is the magic sauce; they have always been growing, Omkar Herlekar does not want any debt in LASA. Growth + No Debt = I like it. They are going to succeed.
On a philosophical note; I see this many times, when one has no or little money, they still find a way to make things happen, but when they have money, they don’t think and use money as a solution. Then they don’t have a solution and no money either. Then they think. This is what happened at OSCL. Omkar does not want a repeat at LASA according to me; he is going to think his way to growth and not borrow from banks is my feeling.
So the triggers to watch in LASA for me are;
- Debt Removal
- Sales Growth
- Profit Growth
- Start of Unit 5
- If anyone reading want’s a further hint, they seem to have a clear path and infrastructure to about 450-500 crore in sales and by then we will be able to see what Omkar does next for further growth.
I will also post a report for LASA in some time based on Peter Lynch’s identification system for a growth company, let’s see how LASA stacks up
On your OSCL question, I will post my answer on the OSCL board.