They have 450 cr cash lying with them and not repaying debt . And with 209cr cash flows and 150 cr profits they can easily fund it with internal accruals with surplus left for wc .they have scaled in past from 50k capacity to now 5 lk by 2022 as projected . Can be doable .
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Hi, yes, this should be questioned in the concall and understood better. As these are large capex, i donât think the other players (other than these 3) are expanding aggressively. So if the industry grows at a high rate then it should be ok. Another good thing is that both these cos donât have much debtâŚboth had raised money.
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Inter corporate loans and related parties advances has grown too big now could have been used to reduce debt .Anyone has the concall transcript ?
When is the electrosteel case being resolved I think that would decide when the books of Sripipes would become clean ;till then debts arenât coming down .
Even I noticed the rising inter-corporate loans. Fail to understand why would the management give loans to other companies when the company itself is in debt. While the interest rate is of respectable 10%, a prudent (read a good corporate governance firm) would never indulge in such a transaction.
Latest results declared.
The way the share price has been falling looks extremely strange and worrisome.
I canât seem to find any negative news about the company except the inter-corporate loans extended to related party. These too were discussed in length in the last con-call. While, the replies were not exactly convincing, but the way the market is reacting, it seems that there is more to it then what actually meets the eye.
Any of the members aware of any such news/update?
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Please go thru the sept concall.
intercorp loans are given as they have excess cash parked in FDs, mutual funds till capex starts, so as interest rate is good they gave. They will take back when capex is in full swing, is what mgmt has clarified. So till march 2021âŚthat element will stay.
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Srikalahasthi Pipes announced that commercial operations of 1st phase i.e. 1 No. 9 MVA furnace to produce Ferro Silicon has commenced on 16 January, 2020. This marks the completion of 1st Phase of the Ferro Alloys unit and the 2nd furnace will be commissioned in this quarter.
Disc: Invested.
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Results out.
- Good result.
- Director resigned. A new nominee director has been appointed.
source:
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Went to MCA webiste to look for company Sanghai commerical & credit (P) Limited for which Srikalahasti pipe has given loan.
Total Share captial of Sanghai commerical & credit (P) limited is : 50 Cr
Loan given by Srikalahasti pipes is : Max is 13 Cr.
This is a red flag for me. Views are welcome.
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Today we know what was going on.
The merger with Electrosteel Castings is detrimental to the minority shareholders of Srikalahasthi. The promoters have indulged in shortchanging and skewed the valuation ratio in favour of the holding company.
Its pity that these promoters still get away with these fraudulent activities while the watch dogs are busy introducing arbit laws. But then again, they cannot be blamed, for these promoters have always been crooks and its unfortunate that retail shareholders suffer in such cases.
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100% echo the same view and message - such a shame. Another good business, down the drain. Another lesson in the markets
Good reminder to only stay with companies having good corporate governance, this company had QIP money going in and out of the firm without any explanation. Promoters have bad track record with other group co and hence was always available cheap.
Joker in the pack was dividend, which kept some investors glued.
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I recently bought this script and it was in visible in my sharekhan account but now share are not visible and neither is this script in NSE or BSE. I am not sure what has happened here. Anybody has any idea?
As mentioned above, this company is getting merged with electrosteel casting. you will get 59 shares for 10 each.
Full link here
I was invested and sold in loss in Nov 2020 due to change in my investing strategy to stay away from companies having doubtful corporate governance.
Thank you Tushar. Looks like I am stuck for now. Will try to exit once shares become tradable.