Thanks! This is very fascinating, I went through their annual report to understand how they have 200cr worth of investments. A few interesting things I observed:
- Note 9 to balance sheet. This is the current investments. They held direct equity in a few companies in 2018 that they sold off between 2018 and 2019 (Note 9 to the balance sheet):
Some of these are stocks I have directly tracked and owned at various points. They clearly have a “Value Investing” bend in owning equity which is encouraging to me personally. Although this might seem negative to a few folks since this is not the primary business of the company. Also strengthens the “cannot reinvest back into business” argument. - Note 4. Non current investments. A lot of the investments are in venture capital funds and have blown up in value between 2018 and 2019:
They have some 98 crores under “Investment in Venture capital funds” which has increased in value from being 33cr in 2018. 3x in 1 year. A few questions regarding this: - Why is the management investing in such risky instruments like Venture capital funds? Is this a gold manufacturing company really? Can someone confirm that goldiam factories exist and ship gold to other countries?
- This is more for my own education. What is “Aggregate amount of unquoted investments”? This is worth 42cr in 2019 and was only 10cr in 2018. And there are no more details available in Note 4 about this.
All in all, either the management are investment geniuses, or (and i do not put this lightly), is this a shell corporation ?
Can someone please confirm if they have actually seen goldiam products or factories or talked to some employees who they know personally? I think this should be our next steps in trying to ascertain what kind of a company this is. @smallcapvaluefind in case you might know answers to some of these questions.