Vikas Ecotech - Chemical Company

(Meena) #305

I will make a decision on this stock based on the Annual report which comes in Aug 2018 for last finiancal year and see the spends in R&D, tax payment, working captial and credit period days and lets see what the management commentary is.

Also i have dropped an email to investor relation team and i havent received a reply from them.

(utsav_garg) #306

some updates

  1. Regarding demerger - After recent bank crisis, banks have changed certain norms and as per the new norms, some secured creditors have objected the company’s move to transfer assets to the new entity. Now a court convened meeting is scheduled on 14th April, if it goes positive, then second motion for demerger will be filed to NCLT
  2. Regarding Dahej plant - Company had to sell the original site as that site faced ONGC pipeline issues, they have shifted to a new nearby site and are now constructing plant over there. It will take the end of April for it to become operational as per the company.
  3. Regarding insurance claim - Company says that formalities have been completed from its side and insurance companies should release the funds after they have their meeting over it.

(Meena) #307

From where are you getting this information ? , also remember its not easy to buy a land, install a plant, commission and run it by April end. So this is a impossbile as i work in Installtion of a any plant site.

(utsav_garg) #308

somebody had talked to company CS… so updating information from there… it’d have been great if somebody had been from Dahej and could verify it personally

(Meena) #309

Dont beileve on somebody information, unless you know it from a known source.
I am still waiting for management commentary as its been a long time they have came on Tv or media or an investor presentation or a conference call…

(utsav_garg) #310

no, the guy had a recorded conversation with the company secretary. So i had heard that recording. Anyway, I myself will be getting in touch with company today and update here about the recent developments

(Meena) #311

I am just suprised, what you have told about creditors , are mentioned in the board meeting report published in BSE. Did you talk to the company yourself now and founf out more information ?

(utsav_garg) #312

(utsav_garg) #313

yeah I had talked to the company, all of the information I had written above was verified by me after I had a talk with company CS Mr Siddhartha. Like I had mentioned before, the problem about secured creditors, they later released it explaining and agreed to the suggested asset transfer by secured creditors for demerger, and just recently, they also had released notification about the same 14th april meet, which I had mentioned over here few weeks back. So all of that information is credible, verified and from company itself only.

( #314

Hi utsav, what do you think is the downside for VEL if de-merger, govt regulation/directions does not come up in the next 1-2 qtrs.

(utsav_garg) #315

if industrial shift didn’t happen, business will still continue to post profits on a similar pattern on QoQ basis and EPS could still manage to be around 1.5 but the huge problem would be the cash flows… that’s a huge challenge this company is facing. I am not a financial guy and just an engineer, so I’d like to keep things simple… cash flow is a huge problem here and I don’t see it improving unless some measures are taken by govt to enforce usage of environment friendly heat stabilizers, as that would definitely bring down the no of debtor days and increase the cash flows from operations. Right now, MTM is a choice and vikas has to offer it on higher credit to sell it product, which does help in the topline and bottomline but isn’t much reflected into cash-flows… it can be imported from china at 5-7% cheaper prices… so if anti-dumping duty comes into play. that can also hugely benefit the business of vikas eco. and off course the company is looking to expand in foreign markets, securing huge orders from developed markets would stabilize the business. It’s a mid risk and high investment opportunity as per me.

disc : i had mentioned before, I am already invested in it and had accumulated at every dip… so my views may be biased.

(utsav_garg) #316

if you could please elaborate upon

“I ve not yet gotten into where money is going and how many subsidiaries companies are getting formed but will soon post views on that too. Just condolidatoon the info .”

It would highly benefit newbies like me and would give us more insight into reading annual reports

(khushi) #319

Saw march quarter share holding. MFs have entered the counter and Fiis have increased their holding.

MF entry can be Good for the stock. Some re-rating can happen soon I feel.

Disc : invested and hence views may be biased.

(Darkwanderer79) #320


Can you tell which MF has entered?

( #321

It is not mentioned which MF but under SHP >> Public Shareholder >> MF section shows 82423 QTY - 0.03%. There was never any MF invested in VEL before this in any capacity.

(Darkwanderer79) #322

Yes, they have some 82k shares…let me try to find out the MF.

(rkedar) #323

As per morningstar, SBI resurgent India opportunities fund is invested in Vikas. It is an offshore fund.
No of shares held - 82,423.

( #324

Hmm… that is a good info. We were waiting for this information on which MF has entered Vikas. This may open the door for others.

(utsav_garg) #325

can anybody tell me where have Jayanthilal Cheddha’s (prince pipes) holdings been classified in the recently released shareholding pattern?

(pnsivam) #326

Its reported as below… in the bottom of the SHP

JAYANT S. CHHEDA HUF 1 20000000 2,00,00,000 7.15