I had a similar experience in garware poly, someone posted suspect behaviour of promoters. I sold as soon as I read it and in like 10mins the post was taken out !
Many users think that this forum is a market maker. There are far far bigger hands in the market and by delaying information here only small retail investors feel the pain
Irrespective of any company, information posted on a public forum should be backed with data. This becomes all the more important when we start giving a very rosy picture or when we start casting aspersions on a company or an individual on a forum like VP. On one hand the issues that you raise could be right but on the other hand there is also the reputation of promoters and the company built over decades and IMO without the issue being backed with proper publicly available data moderator is in the right to remove a post.
I have multiple times posted my negative views on the forum and have not had any issues. Do remember moderators have a tough, subjective and thankless job on VP.
As per this report, fire was put out in a couple of hours.
If we consider Vadodara plant is closed for a month or quarter , what would be the total impact on this quarter revenue. Anyone has inputs on this ?
As per the company’s statement both loss of assets and business loss are covered by Insurance… What I understand is they must have taken business interruption policy and so there may be minor losses due deductible and non admissible claim which may hit P&L…
So in nutshell the entire loss will not touch the P&L… I hope this brings some sense on business loss…
Disclosure: Invested and buying on dips
Once again they issued clarification to exchanges and they are neither denying nor acknowledging closure notice or Am I not able to decode what exactly do they want to convey. Can anyone help!!
Again same thing, they have no where accepted directly that the govt. had issued notice for the closure of the plant. This is not a clear reply, seems any political leader is answering the questions on any media platform. But the thing is clear that the plant will be started again after getting clearance from govt.
Disc: was holding 20 % of PF sold entire holding recently.
I do not agree that the management is being dishonest here. They have issued several letters regarding the fire incident and even the website has a letter regarding the same along with a video message by the CMD. It is unfortunate that an incident like this has occurred but I do not agree that the management response has been dishonest. The below letter they had issued yesterday and it says that they are awaiting approvals to restart - that is the same as saying it is temporarily shut down. I do not believe they need to be any more clear!
Disc - Invested from 600 levels and adding more in this sell off.
The Company has been directed by GPCB for payment of 1 crore as an interim
EnvironmentaI Compensation.
The Company has also been directed to submit Bank Guarantee of 5 Lakhs each under Air
Act and Water Act, along with revocation apptication.
We are in the process of complying with the directions of GPCB as well as other government
authorities. We shal submit the comptiance report to the authorities soon and expect to
receive the permission to restart the Plant after necessary inspections, audits done by the
authorities to their satisfaction.
“Company is in the process of submission
of necessary applications / documents sought by various authorities in order to obtain
necessary permission to restart the Plant at the earliest.”
This clearly means plant is currently not in operation.
Now it is clear and unambiguous– “Gujarat Pollution Control Board has issued directions revoking the closure order”. But when the order was issued, first they hid it and later when Financial Express published the news, a very obtusely worded paragraph was released which left investors wondering what exactly is the status.
One very stupid question I would like to ask…
Deepak Nitrite is a very good growing company which is consistently doing good from last 20-25 years atleast from its business performance point of view. Why it has still not become a Large Cap company, like Bajaj Finance did in a decade’s time?
or Is it that some companies remain small cap or mid cap perennially?
Every company has a roof over their head, and the gap between the head and roof is determined by the opportunity size. India still has a large unmet demand for credit hence Bajaj Finance (or similar) has technically a long runway ahead. However, we should not generalize every NBFC/Bank since not all are similar, some go after established segments while others make their own new segments. Similarly, Deepak operates in certain segments in chemicals industry, and their long term growth will be determined by the choices they make. Typically, companies will mention about their industry structure/opportunity size etc in annual reports, this can help you to gain good understanding.
Agree with you completely. So what I infer from your post is…Size of opprtunity decides whether a company becomes Large cap from small or midcap status.
Can I also infer ( not mentioned in your post) , customer facing companies have more chance to make themselves into large cap, compared to B2B businesses? As here Bajaj Finance could do it, because its B2C, customer facing company while Deepak, being B2B, its tougher to achive that status? Any thoughts?
One of largest market cap in Indian market is B2B - TCS. Until few years back, even RIL was B2B (Petrochemicals). So, while I like B2C businesses more, but the metrics are not straightforward…
I think to become a large caps what’s needed is - Ethical promoters, top notch management, runway of business & growth, consistent execution…and after all of this… excellent capital reallocation…
One more is intangible aspect…and that is innovation & vision of Promoters/Management…for years and even a decade it may look futile to many until the time for that vision arrives…such is the quality of the people involved…and this is i think most important aspect and hence most difficult to find and judge…
