It is cheap relative to Titan and Kalyan Jewellers at current price but not undervalued on absolute basis. Slight rerating can happen in short term. It should give decent return over long term.
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Dear Akash, Have you exited from Edvenswa EnterprisesâŚwhat factors triggered your exit from EdvenswaâŚ
I sold out quickly due to corporate governance issues.
Hi Akash still tracking Lotus chocolate
Yes, small portion is invested in it.
They have acquired Soubhagya Confectionery Private Limited, a chocolate manufacturer recently.
https://soubhagyachocolates.com/
Results were good due to increase in chocolate prices.
Future plans are not known at present.
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Hi @akash_das, could you please share if you have taken any new entry in market, and if possible the rationale behind it for me to do a little bit of research? 
Current portfolio:
- Senco Gold Ltd
- E2E Networks Ltd
- Trust Fintech Ltd
- Virat Industries Ltd
New entrants in my portfolio:
Trust Fintech Limited
Trust Fintech Limited specializes in delivering Software Solutions and Services across Banking, ERP Implementation, Customized Software Development, SAP B1, and Offshore IT Services.
It is a SaaS Product-focused company that is majorly involved in the Implementation and deployment of Core banking Software i.e. TrustBankCBS or MicroFinS.
New softwares like loan origination software, launch in ONDC network and expanding into new geography like US with the help of brother of the promoter should increase the growth in coming years.
Interview of promoter to get a feel for the management.
They have given good future guidance which has to be monitored going forward.
Virat Industries Limited
Virat Industries has been taken over by Mr. Bhavook Tripathi. He is a famous investor known for taking concentrated bets and holding for long term. He bought this company via preferential issue.
This is a special situation and what he does with the company needs to be monitored.
Open offer draft letter.
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Portfolio update
Current portfolio
E2E Networks Limited
L&T has acquired a 21% stake in it and will develop data center which will be operated by E2E Networks. Localisation of the data theme will give them an advantage over bigger players.
https://nsearchives.nseindia.com/corporate/E2E_05112024105909_PressRelease08102024.pdf
Senco Gold Limited
Sales growth was good but margins were affected due to one time impact of customs duty approximately to Rs. 29.8 Cr.
Trust Finance Limited
This quarter results were poor due to delay in payments due to election. Management expects the payment to come through in this quarter. They got an order from Bank of Baroda which shows their capabilities.
There is an overhang of old software which has to be replaced and IPO money has not been utilized properly for the same.
Virat Industries Limited
Money is being infused by way of preferential allotment. 100 Cr is being infused into a 200 Cr company.
Future business and equity dilution has to be monitored.
Trident Techlabs Limited
It provides software related to Power and Engineering solutions to clients. Client list comprises State electricity boards, power companies, defense agencies like Navy and DRDO. It has partnered with global leaders like Eaton.
They are forming a semiconductor subsidiary which will provide electronic design automation tools.
https://nsearchives.nseindia.com/corporate/TECHLABS_14112024201304_Investor_Presentation_S.pdf
Annvrridhhi Ventures Limited (J Taparia Projects Limited)
This company has been taken over by Mr. Chirayu Agrawal and Mr. Sarvesh Agrawal. They have experience in the FMCG and QSR industry. They are shareholders and directors in Transglobal Trade Integration Private Limited which is engaged in the business of Master Franchisee of La Pinoz Pizza of Gujarat.
Company name is changed and indicates the future business to be in line with FMCG or QSR.
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Vuenow Infratech Ltd
âVueNow is an IT Infrastructure as a service (ITaaS) provider company specializing in designing, building and operating cloud-enabled Edge Data Centres and provide Co-location and Network management services.â Basically the same as E2E Networks so I was interested.
The promoters took over Good Value Irrigation Limited and merged their business with it leading to indirect listing of Vuenow.
âOn 8th April 2024, company has acquired the data center of 2 MW capacity from NGBPS Limited having area of 850 sq m at Bhiwadi, District Alwar (Rajasthan) for Rs. 9.25 Crore.â I found it a bit suspicious and started digging about this company from different sources.
I found that this company was doing some multi-level marketing like a ponzi scheme where they were asking for investments from the general public to invest in cloud and data centre business and were offering monthly payments as rentals. People started to complain when the rentals stopped coming.
There was also an ED raid conducted on the company on 17 Oct 2024. Raid was conducted in connection with irregular foreign remittances in lieu of providing database and data processing services.
The company used takeover and reverse merger path to avoid public scrutiny of IPO route. I am providing links I found regarding this company. Final report of investigation has not come at present.
Resources:
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Curious about your investment thesis for this. Thereâs no information on the business front - what will be their business etc, They wrote off around 6cr worth investments in 6 subsidiaries (equal amount invested in 2011-12), another 2cr written off by âdonatingâ another subsidiary. To top all of this, the share of face value of Rs 10 was acquired at Rs 6 (which should be 0 now after the donations), trading currently at Rs 23 and they have plans to split the stock in 10:1 ratio.
I couldnât understand the pedigree of the promoters also - Practicing dental surgeon into trading business and also into running La Pinoz franchise.
There is no point looking at the past of the acquired company as promoters have changed.
Transglobal trade integration private limited is the common company between the acquirers and they have franchise of La Pinoz Pizza for Gujarat region. The do some agri trading also. If they integrate this business with the listed company, this will lead to indirect listing of La Pinoz Pizza.
This is just speculation at present with high uncertainty, so my allocation is also very small here.
Hi @akash_das, are you still holding Trust Fintech or are you downward-averaging? Any change in views?
I have reduced my position in Trust Fintech. I needed money to apply in IPOs. The company has some legacy software which have to be changed. The are looking for new talent for expansion. Good results should come next year. I will look into it again in next quarter.
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https://nsearchives.nseindia.com/corporate/TRIDENTTECHLABS_26122024140112_PRESS_RELEASE-SIGNED.pdf
âIn a strategic move towards its vision to establish itself as a prominent entity in semiconductor technology by steering in-house product design and development in this domain, Trident Techlabs Limited, a semiconductor tools and services company, through its wholly owned subsidiary company Techlabs Semiconductor Private Limited signs letter of intent for acquisition of a strategic stake of 60% in Sivaltech Group, a pair of USA and India-based companies and a prominent provider of product engineering services with expertise in semiconductor design and associated technologies.â
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I have invested recently in International Gemological Institute (India) Limited.
International Gemmological Institute (India) Limited is a globally recognized organization certifying and grading diamonds, gemstones, and jewellery.
IGI provides independent grading reports that analyze and certify the characteristics of stones using internationally recognized standards. These reports include details about the stoneâs colour, cut, clarity, and carat weight.
IGI also offers education courses and degree plans for the gem and jewellery trade and has a research department.
IGI operates 31 laboratories worldwide that grade finished jewellery, natural diamonds, lab-grown diamonds, and gemstones. Additionally, it has 18 gemology schools that graduate thousands of students each year.
They have acquired their global business with IPO money which have low margins but are necessary for marketing and operations.
Itâs only material peer, Gemological Institute of America (GIA) is a nonprofit organization. So it is the only listed company in a duopoly industry.
The increasing interest in lab grown diamonds have led to an increase in revenue of the company in recent years and this can be a good proxy play. Risk of fall in price of lab grown diamonds is mitigated by increase in the volume. Price cannot fall below a certain amount related to the production cost.
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Akash what is your response to this results ?
Also I have written small note on Q3 highlights if you can confirm if this is right
Exicom Tele-Systems Q3 Highlights
Strong EVSE Business Growth
- India: Sales grew 77% YoY, units up 38%, outpacing industry trends.
- Global: Consolidated EVSE revenue surged 120% YoY, led by US & Europe expansion.
- 26 new EV models unveiled at the Bharat Mobility Expo, boosting industry demand.
- Exicom is driving high-power charging adoption with its Harmony Boost solution.
- Secured major DC segment deals, surpassing 1.73 lakh installed EV chargers globally.
Telecom Infrastructure Segment
- Short-term revenue & margin dip due to telecom infra slowdown.
- However, a projected 8-10% CAGR over the next three years supports future growth.
- Early signs of recovery:
- Secured a âš1,680 Cr order for DC power & energy storage solutions for the BharatNet project.
Garbage results.
What slowdown are you talking about. There is bull run going in telecom infrastructure. Look at results of Frog Cellsat and Kore Digital.
Please avoid these promoters if you value your sanity:
HFCL group
Hinduja group
RP Sanjiv Goenka group
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Portfolio update
Current portfolio
| Company | Industry |
|---|---|
| Senco Gold Ltd | Jewellery |
| Trident Techlabs Ltd | IT Software - Application |
| OSEL Devices Ltd | Consumer Electronics |
| Sundrop Brands Ltd | Fast Moving Consumer Goods |
| Indo Farm Equipment Ltd | Capital Goods |
Senco Gold Ltd
Company is expanding at decent rate. The growth guidance of 15 to 20% looks sustainable. They have raised cash through preferential allotment so hopefully wonât need high debt in the medium term.
Trident Techlabs Ltd
They have hired professionals in semiconductor domain. Government push for semiconductor industry should be beneficial in future.
OSEL Device Ltd
Osel Devices Limited manufactures LED display systems and hearing aids. They have entered Strategic Cooperation Agreement with TPV Audio and Visual Technology (Shenzhen) Co Ltd, company incorporated in China,( exclusively authorized by Koninklijke Philips N.V, the owner of âPhilips â trade name and trademark) to manufacture and distribute Mobile phones (Feature Phones & smartphones), Tablets (Android and windows) and other items under the brand âPhilipsâ, âPHILIPSâ, âPhilips Shield Logoâ in India.
Sundrop Brands Ltd
Convergent Finance LLP and Samara Capital acquired Agro Tech Foods Ltd from Conagra Brands. The company had a portfolio of Sundrop oil, Sundrop peanut butter and ACT II popcorn.
They have acquired Del Monte Foods Pvt. Ltd via share swap agreement. Del Monte was previously a JV between Bharti Enterprises and Del Monte Pacific Ltd. Bharti Enterprises have got 21% share in this company through preferential allotment.
Indo Farm Equipment Ltd
Indo Farm Equipment Limited is a fully integrated manufacturer of agricultural and industrial equipment under the brand name ââIndo Farm & Indo Powerââ. Its key products include tractors (16â110 HP), pick-and-carry cranes (9â30 tons), and other farm machinery like harvester combines and rotavators.
The company is adding a new facility which will have the capacity to manufacture 3,600 Cranes P.A.
Portfolio is almost equally weighted at present. Comments and suggestions are welcome.
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Sir have you exited IGI?
It is in my familyâs portfolio which is sort of buy and forget type.
Familyâs portfolio is as follows:
Central Depository Services Ltd
E2E Networks Ltd
International Gemological Institute India Ltd
Bajel Projects Ltd
Inox India Ltd
Indian Renewable Energy Development Agency
Senco Gold Ltd
Sundrop Brands Ltd
Swiggy Ltd
This portfolio is performing better than mine at present.
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