Akash Portfolio

akash_das · November 20, 2022, 6:08pm

I sold some Tata Elxsi to diversify into smaller companies. The IT industry is going in downturn globally and may take some time to recover. So I was thinking of buying back my shares in sip mode over 2years.

Swiss consumer gave me high returns in short time. The rights issue was selling at discount to actual shares so I sold the shares and bought the RE. A 6% position became 12% quickly. I sold some to bring it to 10%.

I sold some CDSL and Hindware also so Dmart position increased. No trading was done in Borosil, Dmart and Tata Consumer.

akash_das · December 7, 2022, 4:41pm

I have started investing in my core portfolio in sip mode. These are the companies that I have selected.

Company name	Sector	Industry	Sub-Industry
Borosil Ltd.	Consumer cyclical	Consumer durable	Glassware
Central Depository Services (India) Ltd.	Financial services	Capital market	Depository
Tata Elxsi Ltd.	Information technology	Software services	ER&D
Avenue Supermarts Ltd.	Consumer defensive	Retail	Discount stores
Tata Consumer Products Ltd.	Consumer defensive	FMCG	Packaged foods

I will take small strategic bets in the satellite portfolio. I have sold Heritage foods. I am thinking of buying the rights entitlement if they are available at discount. I am also interested in Hatsun Agro Product Ltd rights issue, the dilution is different in this one.

akash_das · January 8, 2023, 8:47am

I invested in an IT company Edvenswa Enterprises Ltd.
This is from their website,
‘Edvenswa Enterprises Limited (formerly KLK Electricals Limited) is has consolidated business interests in software development, enterprise solution engaged in the business of providing a range of Information Technology (“IT”) solutions to companies across sectors such as Healthcare & Life Sciences, Supply Chain & Logistics, Banking & Financial Services, Energy, Education and Environment etc. We design, develop and maintain software systems and solutions, create new applications and enhance the functionality of our customers’ existing software products. Our Group endeavours to bring together creativity and knowledge with positive business strategy to furnish the requirements of diverse clients with an inclusive range of products and services which are comprehensive and cost-effective so that the client can focus on their core-competencies to improve or expand their businesses. The Edvenswa Group delivers services across all stages of the product life-cycle, which enables us to work with a wide-range of customers and allows us to develop, enhance and deploy our customers’ software products. The various services offered by our Company are UI/UX Design & Development; Rapid Prototyping; Enterprise Application Engineering; Software Quality Assurance; Social/Mobile Application Development; Application Integration, Maintenance & Migration Services; Cloud & DevOps; and Extended R&D Partnering etc. Our comprehensive suite of service offerings allows us to attract new customers and expand existing customer relationships. We provide an array of solutions like Data Management & Integration; Application Integration; Mobile Application Developemnt & Integration; IOT – Smart Cities, Smart Villages; Learning Management; Big Data, Analytics & Data Science; Robotic Process Automation (RPA); and Intelligent Agents (ML/AI based) etc. which help our clients in strategizing their business objectives.’

https://www.klk.co.in/index.htm

This is from their LinkedIn profile,
'Edvenswa specializes in Technology Incubation and Advanced Consulting services to its customers and helps them with Proof of Concepts, Prototypes and finally Production-ready Systems; Edvenswa also takes up development assignments with special focus on technology & infrastructure start-ups. With presence in both India and US, Edvenswa works with the founders and investors very closely leveraging its highly experienced employees and consultants specialized in various cutting-edge technologies and business processes across various industrial domains. Edvenswa’s mission is to work with new start-ups more as a partner than a service provider by providing its services at actual cost without any markup/margin for exchange of a stake in the start-up business and thus build a high-growth oriented portfolio over a period of time. Edvenswa has so far provided turnkey services to more than 10 start-ups from ideation to the development of functional prototype and helped entrepreneurs in achieving their goals within their budgets and timelines. Edvenswa also makes strategic investments in the Startups and plays the role of a Mentor as well as an Angel Investor and helps secure more funding in advanced stages.

Specialities
Startup Incubation
Quality Assurance services
IoT based solutions
Social Media based solutions
Product Development (Web, Mobile)
IT Consulting
Datacenter
Cloud management services
Data Science related services’

Company has plans for expansion in India and is coming up with a rights issue at ₹25, dates to be announced later. Details about the business are provided in the draft letter of offer.

Please provide any views, details or opinions about this company or any other topic. Thanks in advance.

SajanDidwania · January 22, 2023, 11:51am

Great pick stock has risen 10 times in just 3 months.

akash_das · January 24, 2023, 3:39am

I still feel it is a pump and dump stock. Stock is being manipulated after cornering the float. Few good quarters can generate enough retail interest for dumping to happen.
I maybe wrong here, do your own due diligence if you are thinking of jumping in.

SajanDidwania · January 24, 2023, 3:56am

I agree with you, nothing at sight which says the company is valuable except the great Chandrkant Gogri promoter of Aarti Group holding in the company since IPO.

akash_das · January 26, 2023, 7:32am

I have invested in Sumuka Agro Industries Ltd. They sell Gujarati snacks items like namkeens, khakra, biscuit bhakri, masala peanuts, chana jor garam banana chips under the brand name of Gujjubhai foods. It has its own manufacturing facilities.

akash_das · April 11, 2023, 7:33am

I have recently invested a small amount in Party Cruisers Ltd. The company specializes in Wedding Management and Events Management Business.

Wedding Management Services range from pre-wedding, during wedding and post wedding events like in-house designing, designation wedding event décor etc.They offer professional wedding services through our 2 registered brands-“Vivaah” and “Vows-Away and Beyond” and through Franchisee.

Event Services range from planning & marketing to production and décor etc. They work on the initial conception (pre-event publicity, venue research & booking, transport), to turnkey production (set-up, on-site management, staffing, stage designing, entertainment), to
post-event support (final material distribution, delegate attendance assessment, post-event report). “Event Factory” and “Live Space” brands provide event services.

On March 14th 2023, the company proposed migration from SME Platform (EMERGE) of NSE to the Main Board of NSE.

akash_das · April 21, 2023, 11:13am

I got out of Edvenswa Enterprises Ltd. The CEO Mr. Y. Ramesh Reddy was earlier present in the board of directors of Brightcom Group.

https://www.crunchbase.com/person/ramesh-reddy

“Securities and Exchange Board of India (SEBI) has issued a showcause notice-cum-interim order against Brightcom Group Ltd and its directors, alleging major fraud in the company’s financial statements.
The interim order has been passed against the company, Suresh Kumar Reddy, Vijay Kancharia, Yerradoddi Ramesh Reddy, and Y. Srinivasa Rao. Suresh Reddy and Kancharia are part of the promoter group, while Rao is the CFO.”

The promoter also gave 12.94% of the company to Ms. Anjana Bhutna through rights issue diluting the promoter shareholding. She sold out most of the shares in open market within a month of listing.

Investor_1 · May 20, 2023, 8:04am

Integrity of promoter and they are reducing the stake QoQ …
They have insider trading case … 2019
Auditor was removed sometime back

But just a talk … rJio might aquire the company
As they are getting into financial and what can be better than this … An established brand.

akash_das · May 20, 2023, 4:37pm

I exited the position when I found about the governance issue.

The reduction is due to ESOPs allocation. This needs to be verified.

Some news was there in 2021. Don’t know what happened there.

Niraj_Punjkaran · May 21, 2023, 6:20am

PARTYCRUS_20052023135104_Investor_Presen_March31_2023_Final.pdf (982.5 KB)

akash_das · May 22, 2023, 4:51am

There are some negatives in the latest result of Party Cruisers Limited.

“Other Long term loan and advances for march 2022 include amount of Rs 1,06,24,234.27 given as loan to Dios Hotels LLP. During the year management has decided to write off the loan given to Dios Hotel LLP since as per management judgement and estimation the same is not recoverable. The same has been shown under extraordinary item in Profit and Loss Account for the current year.” Dios Hotels LLP is a related party.

This is from the last annual report where the management mentions that the loan to the related party is good and recoverable.

Related party transactions of last year are as follows:

Qualified Opinion
Independent auditors have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial results.

“1. The Company’s Current Financial Assets as at 31st March 2023 includes Trade Receivables, aggregating to Rs. 497.45 Lakhs (31st March 2022 Rs. 105.06 Lakhs). Respectively out of which in respect of Trade receivable amounting to Rs. 48 Lakhs confirmations/statements have not been received. Therefore, we were unable to comment on the recoverability. Hence, we were unable to ascertain the financial impact on standalone financial statement.
2. The Company’s Current Financial Liabilities as at 31st March 2023 includes Trade Payables, aggregating to Rs. 181.15 Lakhs (31st March 2022 Rs. 175.88 Lakhs) respectively in respect of which confirmations/statements from the respective parties have not been received and which were outstanding for substantial period of time. Further, whilst, we have been able to perform alternate procedures with respect to certain balances, in the absence of confirmations/ statements from the respective parties, we are unable to comment upon the adjustments if any, that are required to the carrying value of aforesaid balances and consequential impact if any on the accompanying standalone financial results.
3. Trade receivable include amount of Rs. 15.96 Lakhs which were outstanding for substantial period of time. Management has assessed that; no adjustments are required for carrying value of aforesaid balances. Consequently, in the absence of sufficient appropriate audit evidence to support the Management’s contention of recoverability of these balances, we are unable to comment upon the adjustments if any, that are required to the carrying value of aforesaid balances and consequential impact if any on the accompanying standalone financial results.
4, The Company loan & advances include amount of Rs. 25.52 Lakhs. which is outstanding for substantial period of time. The same is shown under the contingent assets of the notes of account in previous years. We are of the opinion that provision of same is required in the books of account but as per Management assessments no adjustments are required for carrying value of aforesaid balances since they are in discussion with party for the settlement of amount & there for management is of the opinion that no provision is required, therefore the Company has not made any provision for possible loss on such loans and advances.”

The amount is less but it puts a question mark on the reported figures.

varundarji · July 7, 2023, 5:03pm

Hi @akash_das I have been researching on Quest Softech and would love to discuss on some insights that i have managed to get. Can we discuss? I can be reached on varundarji@gmail.com

akash_das · July 8, 2023, 4:04am

I thought Quest Softech Ltd will build EV Charging stations in Gujarat but their mission statement suggest that their group company VerdeMobility will build the stations and they will provide service.

https://ampvolts.com/about-ampvolts/

"Our Mission:
An affiliate of VerdeMobility, a division of SLS Group Co., Quest Softech (India) Ltd serves as their expanded sales and service division. VerdeMobility is the inventor of innovative charging technologies and has developed a variety of cutting-edge and reasonably priced EV chargers.

We guarantee that it will be simple for you to buy and use these high-quality EV charging stations in India. From feasibility studies to after-sales services, Quest Softech (India) Ltd manages all external focus activities so you can grow your business while simultaneously preserving the environment."

The VerdeMobility site suggest that they will manufacture and ship hardware and software EV charging solutions, so don’t know what role will Quest Softech Ltd play in the scheme of things.

This is their mission statement from their website.
"About VerdeMobility
VerdeMobility is one of the leading EV Charging Solution Providers in India and across the globe.

We manufacture and ship hardware and software EV charging solutions to provide an integrated and end-to-end product experience to our clients.

We are also working towards building India’s largest and most connected EV Charging Network that’s need-friendly, intelligent, easy-to-use, and highly discoverable."

It has been 2 quarters since the acquisition of Quest Softech Ltd by AmpVolt AC DC Renew private Ltd and no improvement in Sales or Profit occured. This means they will not integrate their existing EV business with this company.

The financial results of AmpVolt suggest that they had no revenue till last year.

Copy-of-Financial-Staements-duly-authenticated-as-per-section-134-Including-Boards-report-auditors-report-and-other-documents-05072022 (1).pdf (3.2 MB)

Private placement was done at valuation of 70.3Cr. The basis of valuation was DCF model. Since the current valuation of Quest Softech Ltd is 67.8Cr, no upside is left.

Optional-Attachment-1-04012023.pdf (678.3 KB)

There is some talks regarding raising equity via rights issue. But the promoter sold shares in open market and booked profit. They could have waited and diluted equity via rights issue which would’ve benefitted the company and minority shareholders.

I have sold my shares and will look again if they show some sales or raise equity.

akash_das · July 16, 2023, 8:36am

Swiss Military trademark litigation

Switzerland passed the Switzerland’s Swissness Act in 2017, under which the national symbols and the Swiss cross are not permitted on products that don’t meet “Swissness” criteria. Certain percentage of production of the items has to be done in Switzerland for the product to have the title Swiss or any symbol related to Switzerland in it.

https://www.ige.ch/en/law-and-policy/national-ip-law/indications-of-source/swiss-indications-of-source

Armasuisse - The Federal Office for Defence Procurement gives these licenses to companies and also fights legal battles to prevent use of Swiss brand by other companies. Following companies have the license:

Victorinox, whose Swiss officer’s knife has become the world-renowned icon Swiss Army Knife.
Chrono AG concerning Swiss Military by Chrono watches.
Hanowa AG concerning Swiss Military Hanowa watches.
Breitling AG concerning Patrouille Suisse edition watches.
Swiss brands AG concerning Swiss Military and Swiss Air Force brand for products including chocolate, cosmetics, drinking bottles, outdoor blankets as well as blankets for domestic use.

“Armasuisse had challenged the Deputy Registrar of Trademark’s orders which allowed the registration of the marks by Promoshirts SM. The high court, while allowing the appeal, clarified that a trademark registration must be seriously guarded, and any instance of a false trade description is not registrable. The inherent nature of a mark in itself is a relevant consideration under the Trademarks Act, 1999, concluding that the ‘Swiss Military’ mark ran afoul of that principle. The court noted that if backpacks bearing the words ‘INDIAN AIR FORCE’ were to be seen by persons outside India, they would presume a link with the Indian Air Force, whether the words were, or were not, accompanied by the official Indian Air Force insignia.”

Clarification regarding trademark litigations with third party in relation to trademark “SWISS MILITARY” in India

“In this regard we Promoshirt SM S.A.-Switzerland (a party to the above-mentioned trademark litigations), hereby clarify that we are the owners of the trademark “SWISS MILITARY” by virtue of prior adoption and our worldwide use of the trademark including in India since a period extending decades. We have registrations for the mark “SWISS MILITARY” in around 40 countries across the globe including in India. There are pending litigations regarding the registration and rectification of the trademark in India which are a part of routine legal disputes going on between the parties around the world.
However, we have won many litigations in India and around the world. In a very recent judgment dated 7th June 2023, the Boards of Appeal of EUIPO (European Union Intellectual Property office) entirely rejected the opposition party claim and decided the litigation over trademark in our favour. EUIPO is a European Union Agency responsible for the registration of the European Union trade mark and other Intellectual Property Rights valid across the 27 Member States of the EU. One negative order by an Indian court has been publicised by the opposite party even knowing well, that the matter is sub judice (not yet judicially decided) with an ulterior motive of harming our image and brand goodwill which have been earned by persistent hard work and continuous use of the trademark over the past few decades.
We have already won against the opposite party in many jurisdictions of the world before various authorities such as European Union Trademark Authority, Japan Trademark Office, Korean Intellectual Property Office etc. wherein our rights in the Trademark have been duly recognised and well established. Regarding litigations in India the matters are sub judice. We are confident and taking all necessary steps to protect our globally recognised & decades old intellectual property rights as per the legal framework. We are fully committed and assured that the rights of our brand “SWISS MILITARY” are well secured and fully protected.”

Royalty was being paid by the company to their promoter only and not to the Switzerland government for use of the brand name. They may win this order but other companies can and have also come up with the same name and logo.

I have exited my position as it will be difficult to allocate a higher percentage of portfolio here.

satyajitpatra2005 · September 23, 2023, 6:21pm

Hi Sir,

Long time since your last update. Would like to know your view on current market scenario. Looks like, this down turn might continue for sometime, specially, if the 2nd Qtr result is not going to be at least as per expectation. There is a high chance some of the sectors going to underperform, especially Chemical (despite expectation on turn around), Pharma.
Any recent buy from your side or Sell?
Thank you.

akash_das · September 24, 2023, 2:53pm

Current portfolio comprises of following companies:

Senco Gold Ltd
SGL is a Pan-India jewellery retail player with dominance in the eastern region of India. Its products are being sold under the trade name “Senco Gold & Diamonds”.
It plans to expand in the north and west region with company owned showrooms in Tier 1 cities and franchise owned company operated showrooms in other regions. Increase in franchise showrooms will lead to higher margins in future.
Majority of its sales comes from low margin gold jewellery and they are focussing on increasing the studded jewellery ratio to improve margins.
I have allocated a big portion of my portfolio in this company looking at good valuation.

Borosil Ltd
Demerger timeline is getting extended. It was supposed to happen in September but no information has been provided till now.
There is also a delay in receiving delivery of imported equipments / machinery from Europe required for setting up of the furnace with 25 tonnes production capacity for borosilicate glass at Jaipur, Rajasthan. The project is likely to be commissioned on or before January 31, 2024.

Lotus Chocolate Company Ltd
Reliance Consumer Products have changed the management and auditors of this chocolate company after the takeover. No new information regarding business change has come till now.

Central Depository Services Ltd
IPO season should benefit the company in this quarter. There is a plan to reduce the duration of stock transfer from T+1 to T+0 where the transfer will happen within 1hr to the depository. This can reduce intraday volume but increase the revenue through transfer and depository charges.

MagSon Retail & Distribution Ltd
It is engaged in the retail and distribution business of gourmet, frozen food and speciality foods located in western region. Under the Retail Business, currently, the company operates 26 retail stores/outlets of which 16 are operated by the company and 7 are operated by franchise owners and 3 stores are operated under 2 joint ventures, MRDL operates all its stores under the registered brand name “MagSon”.
Their own brand RF Gourmet, has a range of premium products such as French Fries, Fiery Fries, Chilli Garlic Potato Shots, Delhi Aloo Tikki, Veggie Burger Tikki, Chunky Fries, Eggs and a range of Chicken Seekh Kababs. All products in this brand are sourced from top vendors ensuring premium quality and then are packed and marketed by Magson under this Brand.
I have allocated a small amount to it and will further increase the position after seeing next quarter results.

Studds Accessories Ltd
Sales grew by 8% and profit by 16% this year. ROE is 9%. I won’t allocate more at present as IPO may be delayed further.

akash_das · September 24, 2023, 3:08pm

I don’t have much success with macro prediction till now. RBI most probably keep the interest rate constant in line with the FED rates. Recession fears have started to emerge in the US. Some of the SME companies are trading at insane valuation. Volatility will also increase as we have elections next year.
On the positive side, any cut in interest rate by RBI due to reduction in inflation will benefit the market. There is chance of end of war after US election which will prevent recession.
No action can be taken at present based on macro data.
I am focusing on Consumer based companies at present. I am avoiding chemicals and pharma at present.

bhavesh27 · October 6, 2023, 11:34am

Hey Akash,

Are you still tracking Sanghvi Brands?