ED raided Sintex Ind promoters today in Panama papers leak case.
Regards,
Suhag
1 Like
This is only company about which everyone seems to be bullish and stock is continuously falling.
Very bad news indeedâŚ
This is the reason why it slowly came down from 120 odd levels to 75 levelsâŚSurely some big investors or mfs knew this coming & so slowly dumped it.
In Anycase 48 odd crores of hawala transaction not a very big amount considering 5500 plus crore market cap (sintex ind + sintex plastic) but clearly shows that promoters are busy siphoning money & not at all investor friendly.
Lets see how promoters respond to this news & most importantly how fast or else we are seeing 70 levels soon.
Disc : Invested last week
Clarification from Sintex
The ED has undertaken a very general investigation against all the person / entities mentioned in Panama papers, whose registered agent is M/s Mossack Fonseca & Co., a law firm based in Panama. The entity, Sintex BV (company) also shares the same law firm and therefore was part of such investigation.
However, the company is a genuine business entity (in operation since 2007), all the transactions of whose were duly reported and complied with applicable FEMA & RBI regulations from time to time. The Company is fully confident of its understanding of the FEMA Act and is well equipped with facts and records to defend its case successfully against what it perceives as gross misinterpretation of FEMA & ODI guidelines by the ED.
The reported seizure of its properties is only a provisional seizure and not a final order or outcome of any legal case against the company. The seizure is temporary & will only remain in force till the completion of investigation by ED. Also, this seizure does not affect the operations or profitability of the company in any manner whatsoever.
It is also clarified that the investigation is confined to Sintex Holdings BV and not extendable to Sintex Industries Limited or Sintex Plastics Technology Limited. The company further reiterates that it has not done any violation of FEMA guidelines and any charge of technical violation or breach of guidelines by ED is incorrect and lacks complete understanding of the facts, law and guidelines.
1 Like
somebody forwarded me on whatsapp ⌠Take that as a pinch of salt .
This should clear this quite a bit !
http://www.moneycontrol.com/stocks/reports/sintex-industries-updates-10170381.html
1 Like
Clarification issued to BSE http://www.bseindia.com/xml-data/corpfiling/AttachLive/b2bc5837-4485-4e56-ab2d-0aafecf20c59.pdf
I do not know if I am reading too much into it but the timing of the clarification deserves extra attention. Sintex Ind. was prompt in issuing a clarification on Saturday immediately after the ED news surfaced. However, SPTL waited the whole trading session today to share the same text, but only after market hours. It might just be a conspiracy theory but looking at the trade today, I feel that Promoters must have let the prices slide deliberately to accumulate at lower levels in line with their recent buying.
Valuation look extremely attractive at current levels but technically the stock is still very weak. Technically, on candlestick chart, it made a hammer pattern which is a sign of reversal.
Disc: Accumulated last week and even added today averaging 72
4 Likes
SPTL has bounced back and is trading above its 20-day SMA. If it holds 79 for a couple of sessions further upside is possible. If it falls below it, 70 could be the new bottom. Valuations look very attractive from a long term perspective. Philip Capital has initiated coverage with Outperform rating. I am expecting the stock to attract more attention at current levels.
5 Likes
Detailed report from Phillip Capital attached.
1342346590PC_-_Sintex_Plastics_Initiation-_Dec_2017_20171219185011.pdf (969.9 KB)
Disc: Invested and tracking the developments regularly.
Regards,
Suhag
2 Likes
Remember what happened with Pincon spirits ? If you want to sleepwell al the nights they away from Chor promoters.
3 Likes
I donât quite agree that it is a chor company. This has genuine top-class global business running for the past 70 years, and is a leader in its space for decades. Also if you dig deep into the ED attachment, it a genuine holding company created to accommodate overseas transactions. Also the amount is pretty small (some 3-5 M $) and no big deal. Also attachment is always done by ED as a precautionary measure, and doesnât prevent day-to-day operations related to the asset.
7 Likes
What about management plans for future expansion??
Will they issue more FCCB if needed???
Anyone having conf. call details scheduled for today?
Tried calling investor cell. They asked me to send an email. Have sent it but still waiting for response.
Its at 5.30 pm. Dial in: +91 22 3960 0894 / +91-7045671221
1 Like
they dont need to expand their business as they have sufficient to cater the demand. management sayâs that in some unit they are full capacity utilization and in some they are 20-30% capacity utilization which they are saying that they will utilize capacity in a better way going forward.
What is the opinion of todayâs result?
Donât carry away with analyst target unless u do your homework. People having their own interest !
I havenât seen the results in much detail, but broadly look disappointingâŚwhich is actually evident from the fact that the company has refrained from giving y-o-y comparison in the results and the press release. Custom moldings have again disappointed like last quarter, both in the topline and margins.
Disc: Invested
Regards
SJ