Sunil - That is illegal and VST has shown in the past to be a very ethical management.
Historically if you see, the management has always been overly cautious and has given depressing projections. I’ve heard from Ayush that when they met with the management (Donald, etc) they felt like the management gave such a bad picture of things that they din’t feel like investing. The company has been a 4 bagger in the past year alone.
But yes, there are some real problems with Power Tiller sales.
)- On the other hand tractor sales are growing at a decent rate and are more than compensating for the tiller’s issues. You can gauge how negative the tone of the report was, even though the EPS is probably going to grow the next two quarters.
)- The company’s capacities have been expanded by 60% and the impact is yet to be felt.
)- Mutual fund ownership has increased steeply this year. The stock went from ‘undiscovered small cap’ to ‘emerging in discovery’
I feel there was heavy mutual fund buying today when the stock hit lower circuit, with unusually high volumes, providing downside support.
@Seniors: Is there some way to figure out if Mutual Funds increased stake today?