Also, I am curious about their new acquisition, how much does Fusion electronics add to their revenues going forward, considering there is very limited competition for their products.
I see them using fusion for their own electronic requirements as in dpwcs or kavach or other electronic usage. So most of it would be internally used atleast in FY27. FY26 is revival of it so no revenue from it. From FY28 i see it adding to revenue
Objectives of the recent funds raised:
Source: Today’s disclosure to exchange.
Promoter selling at the time when everything is going great for the company.
Preferential issue already approved by the board then why would they sell in open market.
Is it a warning sign or a red flag.
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Trusting Mukul Agarwal, Ashish Agarwal. Rest no idea why promoter sold at such premium transition point. They would say anything. Whats reality god knows.
Interesting move. The question is who bought those 1.24 lakh shares from the promoters?
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Is there any way to find out this ? I mean buyers of bulk deal ? Dont you think its very bad timing to sell shares by promoters ? Recently they said 5x revenue growth in 2 years in concall, then preferential announced few days back and now sell shares.
I think one could write to company directly and ask these questions.
Already did. Not sure if they will reply. Lets see
Guys whoever hold Concord control should wrote to management about this bulk deal, there is nothing wrong in selling as its personal shares of promoters and they have right to earn as well but the timing is wrong, specially after giving bullish guidances and doing preferential. it is typical behaviour of usual promoter in small companies. i know some will say its right time to sell as of hype generated as due to hype such big selling is possible but that a typical promoter action and not ethical one.
I have already written to them. For me i used to consider Concord management as among the top clean and ethical management in SME space. This action has created a dent to it for sure. i am not sure if they will reply.
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I am sure they would reply (although a bit late). In the past they had replied to some of my queries. I will also write to them. Anyways, please post here if you get any revert. Thanks.
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I am not representing the management or the investment community. However, my view (possibly unbiased) is as follows -
The management or individuals from the management team are not obligated to explain why they sold the shares. If I were the management, I would not reply to any investor query on why they sold shares.
For investors, it’s a call to take based on what they continue to feel about the company and the management. I definitely opine that Concord stock is overvalued. However, I am willing to hold even if it implies some correction from here. I remain optimistic on the long term outlook.
It’s also worth noting that as of October 17, the management held 66.8% stake in the company. Even after the recent equity dilution and share sale, the management will continue to hold more than 60%. They very much have the skin in the game.
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Sometime, for business the Promoters might sell.
With order to be executed and being with Gov the payments and working capital takes the hit.
If look at in +ve manner, for business.
- I have order to be executed
- Need capital
- Getting it from market and again raising money
* Takes Time
* Is costly by 8-12 %
* Lot of norms to be followed
So i guess by selling and getting the business will be more beneficial.
But the real thing and intention can only be conveyed by Promoter / Management
@faisal007 Yes, I agree and I personally feel the same and not at all distracted by the events. As the cost of my acquisition is much much lower, so I am willing to go long for at least for a couple of years.
Anyways, I have written to the management just to sense check and lets see if they respond.
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Some points to cover few inputs above:
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Promoter sold 1.23% equity, it was bulk deal so if one person acquired it, then they have to disclose the name in shareholding pattern.
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Promoter has sold their own personal shares so money will come to their pocket. If they are giving back to company as debt as of consessional interest or interest free loan ? No such update yet.
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Recently in concall promoter said for working capital “we are working with multiple banks to increase as and when the working capital requirement arises”. If expected growth by promoter is REALLY 5x in 2 years as they said in concall then i would personally say equity dilution to raise funds and selling their own equity is not good idea at this juncture. Rest they are owners so free to do what they want.
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This is their investor relations number, if there is no reply on mail, someone can try connecting here.
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The markets have been still kind to this company ignoring as if nothing has happened. Markets seems to be okay for a small percentage of promoter sale. Probably insiders are aware of something that we don’t know.
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Yes, the last one to two months have been brutal in terms of the punishment for mid-cap and small-cap names. Concord has however continued to trend higher.
The management stake sale is not significant. The markets are looking at the Kavach orders that are likely within the next 2 months. And it’s going to be big.
Further, Fusion Electronics can potentially surprise. Government PLI for capacity expansion might be a bonus.
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Yes Concord is showing good relative strength. Tomorrow is concall with HEM securities. Question can be asked. Promoter selling was 1.23% so cannt be considered small.
Lets hope big kavach orders and new big developments announced.
Fusion electronics will be utilized inhouse for kavach and DPWCS electronics part in fy27.
I was there in today’s webinar call. The management once again was very confident of growth and the guidance ahead in the next 3 to 5 years in his commentary. It was more or less same commentary as it was heard in H1 investor call. The management has also touched upon the recent stake sale. As assumed, the sale was more of a personal transaction and the promoters have larger interest and skin in the game for the growth of the company.
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