Thanks a lot for the insights Devesh! Also, since Heranba had acquired the shares of Daikaffil at Rs. 38 whereas currently it’s running at ~200 don’t you think much of the growth and turnaround news is already baked into the price?
I agree with this, Harsh but the thing is you never get the stock at the price the company acquired it unless you are very lucky. I hope we get this chance in Daikaffil, but otherwise the price will always run up. There are a few things you can be mindful about here:
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Think about how big the company can be from a M-Cap perspective on the basis of the resources being allocated to it
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Think about the price at which the promoter bought shares in the company again. Promoter was a buyer in Daikaffil till the price of 227. That is another signal
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Look at technicals to understand major supports. I can sense that daikaffil can fall another 10-15% on the basis of its support at 166-161
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Look at prices where other large investors entered
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Thanks a lot! Makes perfect sense
Found a very interesting tracker for all live Takeovers on the SEBI Website:
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Daikaffil has announced initial fund raising in the company, this might be used for the first 50 Cr of Capex that needs to go towards the repairs
The detailed document is here:
77584ac4-19ff-429c-b051-794a84934cef.pdf (3.2 MB)
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The company also proposes to advance loans, guarantees, or securities to related parties, including subsidiaries, holding companies, joint ventures, and associated companies.
I don’t think many people/investors will be comfortable with such significant related party transactions especially when there is a bigger company (Heramba) that stands to benefit a much more than the smaller one (Daikaffil).
Just my thoughts…
Disc: Holding a small qty
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Financial Results for this quarter have been announced.
The company has generated a 3 Cr revenue this quarter.
I’ve increased my holding, hope they increase the communication and transparency from their part and not just keep this company as a loss making endeavor of Heranba.
V.V. Risky at this stage though.
Also @DeveshGaur, just wanted to know for reference where have they said this?
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Hello, this was based on an interaction an investor friend had with the promoters of Heranba, including RK Shetty
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Another round of share acquisition by the promoter. Now SAMS Industries holds 2.74% of the company with the promoter holding at 51.56%
Disclosure: Holding
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More insider buying. SAMS Industries now holds 2.96% with the total promoter holding at 51.78%
Stock locked in upper circuit for last 5 sessions ever since promoter buying resumed.
Disclosure: Holding
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Screen from Heranba’s concall. Self explanatory.
Disc: holding small qtn, added recently as well. However qtn remains small due to risk associated with size of co etc. Views are biased.
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Buying happening every day now.
It seems like there is a day’s lag in reporting though. This is buying from yesterday but was reported today
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I wouldn’t read too much into share holding pattern indicators here. Sure it’s very interesting but there is no concrete trigger here. All abstract possibilities. Betting here means simply betting based on SHP without the support of business.
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