Talwalkars Better value Fitness Ltd - Good fundamentals

(Parag) #87

I find it very strange the way Talwalkars has handled this spin-off event. Now, there will two companies listed, so it is reasonable for a shareholder to expect financial results for two separate companies as recent as possible. However, I could find the one dated March 2016.

In last con call, management had said that they would publish the result as soon as they receive all approvals from NCLT/BSE/NSE. However, the presentation that they posted two weeks back does not contain separate balance sheet for two companies. I am wondering how they expect current and future investor to take a decision based on some data which is all most two years old?

I called the company and asked about listing of other company. They said it may take around 3 to 4 weeks to list the other company.

(sjain_13) #88

Dear Senior members,

Wanted your help to understand this demerger. The cost of acquisition of Lifestyle business (held under Existing listed business ) is 28%.

Does this mean the price of existing listed company will fall down to a range closer to 28% of pre-demerger price range of 28% * 250 (pre-demerger price of last week) = 70/- (assuming no PE rerating) ?

Thank you for helping me understand the transaction better

(Parag) #89

I agree with your calculation.

I think the stock price should have fallen to around 70 yesterday but looks like market assumed that GYM business would be currently listed company. So the stock may likely to see few days of lower circuits and pain for a shareholder.

(Sahiriar) #90

I have been holding it for 2 months now ar 303. Will I get shares for the lifestyle business too after this process is over?

(sjain_13) #91

Thanks. I too got on the wrong side thinking the existing listed company will hold Gym business and ended up buying at 70% of the pre-demerger price. Thankfully, this was a smaller exposure

(sjain_13) #92

Dear Members,

I am keen to understand if the promoters of Talwalkars are minority shareholder friendly and how is the corporate governance. I have read some random views where other investors have mentioned that in their view corporate governance is not good. However, I am looking for some reasons that indicate corporate governance is not good

thanks for your valuable inputs

(Aditya Mehta) #93

Mgt played their role as they clarified this initially in Presentations uploaded in Nov and March, that gym business will be demerged and names will be swapped later on.
They have fulfilled their responsibility of informing investors.
Although it was bit confusing but we cannot blame mgt for this.

(Sahiriar) #94

By when do you think we can expect the relisting? ANd there is a share by the name talwakars which is still trading and falling like a meteor. Why is it falling?

(Aditya Mehta) #95

U might be knowing that the company has demerged its gym business from its lifestyle business.
So,it is lifestyle business which is listed and falling down bcoz street thinks its valuations are high.
The gym business which initially will be named as talwalkars lifestyle ltd will be listed within 3-4 weeks.

(dmobile) #96

Am I right in assuming that…

Current listed entity is Talwalkar Gym. AND Soon to be listed will be Talwalkar Lifestyle

(Parag) #97

I think it us other way around. Gym business will be listed later and the currently listed business is Lifestyle business. I did call investor relation department and confirmed my understanding.

(Hardik) #98

This article clears the ambiguity.

(Aditya Mehta) #99

Can all this drama may lead to negative impact on the listing of Gym Business?
Though that business is fundamentally strong n hav better ratios than lifestyle business.
Would like hear what are the opinions of other members.

(Abhishek Jain) #100

i have been impacted severly with the game played by promoters.What shud have closed on Rs 120/130 got closed at Rs 190 or so on march 27th, thus continuous lower circuits since then and erosion of hard earned money.It pains.
Anyway i personally beleive that " when in doubt get out" .MGMT has given a bad impression and time to move out

(Aditya Mehta) #101

See cases of wrong price discovery doesn’t happen bcoz of managements.
Though the process could have been more simplified but its our responsibility to conduct due diligence before investing.

(Abhishek Jain) #102

i have seen you defending the company at multiple platforms- here,twitter et all.

Just to APPRISE YOU, the circular from the mgmt came on 27th march End of business hours regarding the demerger and all that misleaing doc with regards to merged and demerged entity.Obviously, it was meant to mislead retail investors.People starting buying since 27th morning anticipating that since there is a drop of 20% , it will be gym business which will be retained by the existing company, but ALAS which was the other way round.
Anyway, I just got off from this script today at Rs 82. Its a big learning for me.NEVER EVER INVEST IN A COMPANY WHOSE MGMT YOU DONT KNOW.
For the sake of others knowledge, starting today its under BSE surveilence.So going ahead will be tough.
Exit whenever u get chance.

(Marathondreams) #105

Please see my comments made in January. Company is in good sector but promoter actions are “troublesome”. Bad Capital allocation, dodgy accounting policies, related party transactions,promoter stake sale, unrelated area expansions, inconsistent growth strategy, scant regard to minority shareholders… list goes on and on. There are much better opportunities in the market than companies like these…

(ASPN) #106

Not everything is lost. Pls check your demat account, the shares of Talwalkar Lifestyles Ltd are already credited (in the ratio 1:1). Those shares will soon start trading (when, I don’t exactly know).

Next point - read the below article from Capitalmind already posted by @hardikca. Almost 71% of the assests of parent company are transferred to the demerged company. So Capitalmind suggests the the share could find some support at approx 70 levels. No wonder it is falling all the way from 250 levels. The exchanges should have set the price right once, instead of allowing daily circuits.

(Abhishek Jain) #107

The shares bought till 26th march close of business hours would be eligible for 1:1 allotment in the demerged company, the gym biz ( once it is listed- no info yet) and the the current company(non gym biz).The demerger happened in the ratio of 71:29 for gym: non-gym biz. So you will get the price worth the share price of to-be listed gym entity.
Those who bought on or after 27th morning will only get the non gym business shares, which is their non-core business and as per me, non-performing business.
The mgmt informed the exchange on 27th march evening regarding the merged and demerged entity and later on the swapping of the names; by the time the damage already been done to retail investors.No matter its been in lower circuits since then.

(zygo23554) #108

This drama just reinforces my belief that too much corporate action where one has to cut through promoter intent combined with business moves that do not really fit into a common sense model - makes for a dicey investment.

This combined with fuzzy accounting that is a hybrid of accrual & cash (effectively taking whatever is most convenient to the business) and the kind of communication (that could have easily been handled far better) we have seen is enough to keep me away from this counter.

Their capital allocation and expansion approach has been a joke IMO.