I highly recommend to stay away from this business and management. I lost my shirt investing in this IPO in the small/micro cap melt-up in Nov 2017 (just a couple of months before the painful bear market of 2-2.5 years).
Of course I have no one else to blame except myself for a dastardly act of commission (hadn’t been introduced to Saurabh Mukherjea or Marcellus before then, they’ve completely altered my investing thought process and subsequent returns).
In the current bull market anything can happen and I won’t be surprised if this company also gives good returns - but just think of one simple thing, if the IPO in Nov 2017 was at Rs 206, why is the CMP at 33? I hold many other SME companies (some now listed on NSE main board) which have real business models, real profits and much higher than their Nov 2017 or IPO prices. This will be a black box investment if ever there was one.
Stock is at 2 year high now, Have fundamentals/Future Prospects have changed for the company ? Company today released its annual report SECURCRED_03122021180638_BMOutcomeARFinal.pdf (3.7 MB)
Latest annual report is full of rules compliance and financial data, to be honest these were the only two things i could find and both mean nothing, both can be easily fudged. No plan, nothing has been discussed. No market data, no info about business environment, no info about how r they collecting data, clients (mentioned) but basically leads to nothing, just seems like namedropping, so, nothing. Investing in it seems a lot more risky than investing in lottery. Although no one should be judged by a simple pic but the head is giving crook vibes. On top of that as someone had pointed out earlier as well that what is inventory doing in this business? Goodwill was also there in books, around 8 crore. Equity capital is around 40 crore and 8 crore is goodwill on books. A lot of receivables. They somewhere mentioned that they have started providing services to PAN card issuing authorities but beyond that nothing. Wherever this company is going, i will walk in opposite direction, so that distance between us can be as maximum as possible.
