REPCO home finance


(Sami) #481

Conf. call should have been scheduled and press release should have been issued before market opening and MD Varadharajan sir should be included in speakers list. “No material impact” - there is definitely better way to instill confidence in poor retail investor’s mind.


(Growth_without Debt) #482

Clarification to exchange is not in line with investors confidence on management quality of REPCO. Company came to CBI raid through news published !!! Why CEO doesn’t give direct information about CBI raid to company?
Investors are paying high P/E multiple for Mgt quality compare to DHFL but it doesn’t prove by the submitted clarification!!


(sanjay agarwal) #483

Pl check latest clarification given by Mr r vardarajan on bse site uploaded at 5.10 pm


(Krishna Rai) #484

Latest update provided to exchanges regarding Mr. R. Vardarajan’s reply to Chairman http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/482F914D_D277_4246_A450_C80474262218_171411.pdf

He has maintained the line that nothing wrong was done in this case of foreclosure by him or the Repco. He has explicitly stated that there was not a waiver on principal or interest. He further states that no pre-payment penalty was charged per the guidelines of NHB. Processing fee of 6 lacs (1% of loan) was charged and administrative charges were waived off by competent authority.

My view on this entire episode is that it has been blown out of proportion. May be someone with malign intent has created this churn for the management.


(ramanhp) #485

How do you know that the company made clarification only after the news ? They might have informed the investors in any case. It takes some time to send out a public communication. This incident is insufficient to pass judgement on REPCO’s governance quality. We need to wait and watch.

DIsc : Not invested but tracking closely.


(CommonMan) #486

This should settle it.


(Growth_without Debt) #487

Safal niveshak on finance
http://www.safalniveshak.com/i-missed-10-bagger/


(MANISH OKHADE) #488

From this episode, following is the learning:

  1. Social media is a tool for unnecessary sensationalism. Even popular investors do it without giving much thought about what they are saying. One should take it with a pinch of salt and rather try to focus on facts not somebody’s imaginary unsupported views.
  2. Raids, investigations “could” happen to law abiding guys so one should not conclude anything negative until such events results into anything substantial.

Disclosure: Repco is my largest holding so needless to say i was worried to hell and has undergone a lot of emotional upheaval. But investing is a continuous journey and can be learned through experience only so its turned out to be a good learning.


(Vivek Gautam) #489

Good that development happened on a weekend.:slight_smile:otherwise there wud hv been a big panic n many benefactors from that.


(Aksh) #491

Do you really mean it? Would this not be a very wrong message to the community and if followed here at VP all the threads would not have only positive views? :slight_smile:


(Krishna Rai) #492

My understanding is this community is what it is because of fact based discussions.The community stands for data driven thoughts. The community stands for humility despite having knowledge and the community stands for eliminating rumors. Airing views without data, jumping to the conclusion of ‘huge scam’, pushing hidden agenda by saying that ‘I always knew it’ and most importantly pretending to defend biased opinions are few things that the gentleman did wrong on twitter. Valuepickr is more, much more than just tweeting.


(umang_1991) #493

That gentleman just shoots on day 0 to say that he always knew there is something wrong and insinuated a lot of malpractice going with the company. I defended Repco (although I am not invested), I did not liked the blanket statement posted by the gentlemen.

There is another gentlemen who was a fund manager at SBI, since ages he is saying that there is something maleficent going on in Auropharma. I am yet to see his statement coming true. Meanwhile Auro has scaled newer peaks.

My 2 cents is that we need not take statements at twitter or even otherwise at face value. People have their own hidden agenda, biases, regret of missing a multibagger etc. We need to exercise our goon good judgement.


(Ankur Lakhia) #494

I still have that question in my mind. If this is indeed a trivial matter, how come CBI got involved? Is it so easy to get CBI involved for an ex-employee? We have seen statement of MD. I think CBI has not yet concluded investigation and we have not yet known what CBI has to say.


(c.t.sreenath) #496

The complaint ‘probably’ came from a company insider. There is a history of few inside individuals opposing the MDs reappointment and over other issues.
The complaint too is related to a single entity. There is no reason as such to suspect a sinister scheme. Atleast the MDs explanation and media reports point to that.


(c.t.sreenath) #497

I was shocked and saddened by Shyams tweet . He could have shown restraint before tweeting about the raid.
Shyam has been vocal about his distaste for MFI-NBFCs , over valued , hyped stocks, misgovernance, generally where there is a wide disconnect between fundamentals and price etc.
What many of us know about him is his selfless nature, in educating investors over the years at the investors association. From raising awareness on value investment principles to avoiding undue risk in investors portfolio . His work comes NOT as a build up to any expensive annual subscription service or to build up a vast follower base for effecting pump and dump schemes. He does that out of his own time, own personal interest in deepening retail investors participation in the market.
He has often praised the valuepickr platform on democratizing the investing process.
There is a lot we could learn from his teachings on asset allocation and risk management.
I hope we can rest this debacle and return to stock specific discussions .

Thanks to members for keeping the thread updated.

Disclosure : Repco forms 30% of my PF


(Yatharth) #498

More people, who do not own Repco, are unhappy and screaming “huge scam”; than those who own.

Knowing a bit of banking, yet to hear/read anything wrong in the company or in this particular case.

Let more facts emerge, till then, holding and buying. Will it be a wrong decision to accumulate, let us see but opportunities in good companies do not come every day.

Invested :: Amongst top 3 of my stocks.


(Ankur Lakhia) #499

I am not yet clear though on question of how come CBI is involved? I don’t think if anyone is unhappy about some transaction in any company, he can just call up CBI and CBI conduct raids on premises. I don’t think I can summon CBI to conduct raids like this for a small transaction. Hence, I feel we need to wait for some more time before passing any judgement on the issue.

Lynchfan,

Don’t you think 30% is very high weight for any company in portfolio? (My intention is not to make you sell Repco. I don’t intend to buy Repco anytime now or later. Hence, please don’t take this in any other way.)


(Raj Panda) #500

Posting with lot of timidity given the strong views against the tweet.

But take a moment to think through these points,

  1. We live in a democracy. Everyone is entitled to his/her opinion. Of course, not at the cost of maligning someone.
  2. In the private world of publicly listed companies, many things happen in normal course of business which media/arm chair analyst will have no clue until it’s known to everyone and their grandmothers because of some big event. Just think of those companies which were darlings (meaning large number of people agreed about their invest-able worthiness) until suddenly something changed and whole market agreed they were black sheep’s all along. But many people in their private circles knew about these black sheep’s all along, right ?
  3. In my investing experience of about 5-6 years, people with industry connection and their ears to the ground many times get to know more about the inner workings of a company than the formal media or even diligent annual report kinda well read investors get to know.
  4. Humans and their assessment of anything always has a chance of going wrong and it will remain so. If data was all, that was needed to ace in the field of investing, in not so distant future AI driven super data cruncher systems would be super investors. Do you see that happening ?
  5. We live in an era, where for first time in India’s history, information about investing (including the rumour mill) has become more democratised outside the old region based investing circles.
  6. IMHO we need to learn to conduct our investing, taking into account all sorts of news/views both negative and positive, keeping our ears to the ground. Someone somewhere could always say something about our holdings which we don’t like to hear. The last thing we probably want, is to make everyone talk positive about the companies we hold and shut out anything negative because it’s not backed by data. It’s good to have data (more reliable) doesn’t mean anything without data is not worthy of listening at all and the originator of that thought has to be put down.

I am neither trying to support the person who wrote the tweet nor trying to say that, what he wrote is correct/wrong. Just speaking in very generic terms. We will see such instances happen many time in future. Some times they may prove correct ? Sometimes wrong? Who knows.
Let’s chill and move on.


(Krishna Rai) #501

I tried not to reply on this because of the disclaimer that the post was written with a lot of timidity. However I could not stop because I do feel strongly against the tweet. Please find point by point reply (I would try best to restrain myself after this). I also want to call out that I respect the intent with which you have written the post. Here it goes

1- My concern with the tweet was exactly what you have written in last part of the sentence - ‘not at the cost of maligning someone’. I did feel that he maligned the company and the MD of RHFL. The direct and indirect impact of this maligned effort is something that has multiple dimensions but is not easily measurable.

2- Valid point. But I also want us to think about the companies which were incorrectly labeled as running ‘huge scam’, the accounting practices were questioned only later to realize that we over(mis)read. Again the impact of these false alarms have been equally big.

3- Agree. No counter argument on this except that opinion is also data if supported by logic & results. The other point is I have eleven years of investing experience but my perspective is there are people who know more about the ground realities and there are people who only pretend. We need to be careful about people who pretend.

4- I repeat that opinion is also data if supported by logic & results. Just throwing some opinion cannot be classified worthy.

5- No comments.

6- This is where I have fairly different perspective. It is not that all who are writing against the tweet want to hear only positive things. I am not sure how someone is reaching to this conclusion. The push back is on just randomly writing something good or bad. For example one of our friend has elaborated with an example where he had not so great experience with Repco, and no one raised a question on that. Let me give another example. If I would say that Repco does not have a good dividend yield and so there only so much cushion we have with the price at which it is quoting. Now, there may be different point of views but I would not expect people to be mad at me :). However if I would say that Repco has poor ROA then I expect people to be mad at me because that is not factual.

Thank you for bearing with me.


#502

The case is very simple if you imagine working environment of a PSU . Mr. Varadarajan has got 1.75cr worth of stock options from RHFL and tell me how many PSU bankers can manage to generate so much from their compensation structure. This will certainly invite jealousy and bitching by your ex-colleagues. I always thought that his stakes are too high to do something stupid at this stage of his career. I never believed the tweet but will thank him for creating some panic. Will shake weak hands allowing others to jump. I did not buy it for myself but added to some portfolios I manage.