One side they are giving out loan to related entities of 50crs and on the other side they are doing capex for which they will raise debt in future.
So every quarterly results we should watch at margins, share of high-value added product, growth and are capex plans going on as planned?
About the 50cr loan, Its just an enabling approval. Let’s first see who they give the loan to and what will be the amount and then we can decide if it’s good or bad.
We will get to know about it at the next earning concall
untill that we have to stay put.
I had sent the email for same and got the replies. Attached below.
First reply was standard regulatory response. Then I was very specific about one thing and asked for a Yes/No answer.
My only concern is that the loans should go to only the step down subsidiaries or associate companies so that
Very hard to inference anything from the response as of now. I wish there was a concall this quarter. Will now have to wait till the next quarter and there is a possibility that the transaction gets executed before that.
We clearly understand 100 crore capex including some loan and paying interest and giving 50 crore loan to a promoter related company is not in minority share holder interest. Sometimes during mining operations and contracts - unacounted transactions may have to be given, which may or may not be the case.
Either ways we have to accept that its not in minority share holders interest or not very transparent.
I dont think its for subsidiary or associate company, otherwise they would have said so - Saves credibility among share holders
Management may or may not change in future but as off now it is not aligned in line with other shareholders
As per section 185
& From their ‘No’ response
We can clearly Understand it will be used only for Subsidiaries of the parent company
I hope it clarifies it will not be major issue
Correct me if i am wong
I think you are correct but anyways we will get to know about it in the next quarter concall.
Another red flag I came across is the rapid increase in leadership renumeration.
Renumeration has increased at 25% yoy over the last few years.
Sure the company has done well but not well enough to justfiy a 25% yoy increase.
In 2025, Rajesh Parikh drew 3Cr of remuneration. That is 5% of the company PAT.
This is extremely excessive even for a very fast growing company. 20ML has had normal growth.
IN 2025, All directors (mostly family) combined withdrew ~7.5Cr which is 12% of PAT! The is absurdly high I think.
If they want higher salries they should do it after they have delivered the returns. And honestly it shouldn’t exceed 3% or so.
Curious to hear others opinion on this matter.
Upcoming concall will be key to all our queries.
Any update regarding when will fhe updating concall will be scheduled
