Too many red flags past few days. I just sold all my holdings.
Dear @satya61229, There have been concerns raised by investors on how the company has been able to furnish results on 3rd day of a new quarter with clockwork precision, and whether there could be a possibility of manipulation of numbers or not. Though, I still maintain that fundamentals have been sound till date but management integrity has remained in question. Since the quarterly results published by the Company were unaudited, I am hoping there wonât surface any buried skeleton in the year end results, which they have to get scrutinized and audited by independent auditors. But, since hoping is not the best strategy in investing, a little caution is necessary.
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Sanwariaâs latest presentation on BSE website.
http://www.bseindia.com/xml-data/corpfiling/AttachLive/eae0143e-1c75-4574-b319-ee0873beb6e3.pdf
Management is very hardworking, sincere and transparent in its effort to
pump the stock price. Then, like in the past, the family members will dump
it.
Disc; invested
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Donât know whom to believe more - oscillationss or CARE Rating agency!
Anyone know the blogger! Many looks alone but are part of operator group. Not telling anything bad about the blogger but checking whom I am listening and reading is very important in investing job.
CARE rating agency rating given on 27th July 2017 which is not very old. Also consider, result is coming good from 2015. In 2017, result were strong. CARE has talked about Rice business which helped Sanwaria Consumer clock this good result. In 2017, CARE talked about 64% capacity utilisation of Rice unit.
CARE Ratingâs equigrade grid (CEG)
Disc: Invested and made profit earlier too.
The word âRiskâ appears thrice - once in âDisclaimerâ and twice in âAbout CAREâ and not even once in the analysis. The word âThreatâ is conspicuous by its absence as well. The rest of the document has no credibility hence.
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Strange is the way how market immediately reacts to the news. The intention must be to increase oilseeds production in the country by making it remunerative for the farmers.But then some other crop cultivation will come down as more land for cultivation cannot become available.
Sanwaria Consumer is in lower circuit
That too despite good results which were announced last week.
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=c21c433e-6830-4cc5-923c-31103b79140c
Very interesting announcement by Sanwaria.
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Really interesting announcement.
Summary of that PDF:
Sanwaria has announced to increase FII/DII/Funds participation. It will sell Rs 400 Cr worth of QIP. Price will be determined by SEBI rule.
Sanwaria promoters will buy Rs 100 Cr worth of share at Rs 35 along with other investors through QIP route.
CMP is Rs 19.80.
Disc: Invested.
I see it has 36.81 Cr equity. But it will raise Rs 400 Cr + 100 Cr = Rs 500 Cr.
Is it all fine!!!
How to read it?
What will it do with all that money. The new equity infusion is more that 13 times of current equity.
Should we believe the promoters with this high equity dilution? After all, our shares will do down.
Today read that Patanjali is most probably buy Ruchi Soya at Rs 9000 cr. There are many bidders but this is a rumour. Any link with the current news.
Disc: Invested
With respect to the recent announcement by Company of 1) raising up to INR 400 cr by QIP and 2) Investment of INR 100 cr by Promoter at Rs. 35 / share we should note the following:
- The announcement regarding 400 cr QIP placement is at best vague, and perhaps misleading. Use of proceeds covers such a wide spectrum (working capital / capacity expansion / acquisition) and so does the investor type (institutions, MFs, FIIs etc.). I strongly doubt there is any specific QIP placement on the cards. Let us not forget that at the AGM on Sept 29 2017, Promoters had approved $100 million fundraising for a similarly wide, vague purpose. Till date there has been no update on this front.
Below is the agenda item for May 07 2018 board meeting
Below is the resolution passed at the AGM on Sept 29 2017
- With respect to Promoter allotment @ 35 - I think they are playing a very sly game here. They have announced this â100 cr investmentâ 3 times already. This time the distinction is that they are linking the investment to the QIP fundraise. Does this mean that if the QIP fundraise does not happen, Promoter will not invest the money? If so, is it just another pump and dump tactic of the Promoter?
Latest announcement (April 20 2018):
Previous resolution (Feb 20 2018):
Previous announcement (Feb 05 2018):
In the meanwhile, what is fact is that Promoters are continuously offloading at higher price without any sensible explanations, willfully defaulting on SHP compliance and announcing sale months after they are done, issuing unaudited financials for Q4 which is not required, and making bogus claims regarding debt reduction, store expansion etc.
Disc. Was holding since single digit levels and exited fully on April 20 after announcement of further Promoter stake sale.
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I have been invested in this stock for fairly long. I totally support your views.
Disc : invested.
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It is tough. I made profit when I had bought at single digit but now holding at rs 21 avg. Possibly need to sell at loss if promoters are still playing fox.
Disc: Invested.
I was holding 15% in my portfolio at price of 6, couldnât able sell at the price above 30, by seeing recent management moves I took complete exit today.
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Has anyone here who is from Madhya Pradesh and especially Bhopal seen a Sanwaria Kirana store⌠Do they actually exist? How is the footfall in these stores?
Sanwaria boasts about tie up with Amazon, Flipkart etc but when I tried searching online all I could find is some trivial products such as Sanwaria Dante manjan and some Hingastic churan. Donât even know if these are actually this companyâs products.
Has anyone seen their basmatinrice brand Nashira in marketâŚanyone from UAE? Esp Dubai?
Sanwaria was my Mahurat day trading. It was my top most holding and I was very hopeful and planned to hold for long,so did not book profit when it touched 30+. But after seeing management suspicious activity and operator driven movement I made complete exit from this stock.
Not suggesting anyone anything, please take your own call, I am just expressing my experience.
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Good questions. It is impossible to determine based on desktop study and I had also begun to question these claims which was another reason prompting my exit from the counter. Company has been mentioning 25 / 50 / 100 / 500 stores but there have been no concrete updates on the roll-out, how it is being funded, where the shops are located etc. Even the quarterly investor presentations are copy-paste exercises where only the first few pages on results are updated.
This seems like the chor company that Porinju Veliyath keeps talking about.
Are not any obligation to declare Quarterly Shareholding ? Sanwaria has not declared Shareholding pattern for March yet.
In Dec 2017, they has sold max allowed for promoters that is 5%.
Disc: Invested