Could be the operators themselves buying back…shame that sebi allows this to continue happening with the same script
"This is to inform you that the company has received a communication from one of our Director and investor that a Registered Broker (F6 Finserve Private Limited) located at 206, 2nd Floor, Sewa Corporate Park, MG Road, Heritage City, Sector 25, Gurugram, Haryana -122022, offloaded fraudulently some shares of Kwality Limited in the market."
Isn’t it baffling that such veteran professionals would choose a broker that has hardly 1500 clients?
When such a significant holding is possessed by the person why choose an intermediary who has questionable credentials?
Is there a dearth of good stick broking firms?
I do understand that most brokers have at one point of time indulged in unscrupulous, unethical acts. But choosing a leading broker significantly reduces the risk.
I find it hard to believe why any investor would choose such brokers.
nowhere is the volume of stocks with the particular broker stated…pretty sure the broker didnt have 1 cr shares of the client
Then what was even the purpose of that notification from the company?
There has to be some explanation.
They claim that the broker fraudulently dumped shares in the market. There’s no explanation provided whatsoever.
Was it the block of shares that was pledged, was it the block of shares in the broker’s pool account? What transpired?
Such massive downward moves definitely deserve an explanation.
the same happened in 2011 and other times, as i mentioned its shameful that no action is taken by seBI
True. It’s the retail investor that ends up losing a significant portion of the portfolio.There should be consequences for persons indulging in such unscrupulous activities.
F6 Finserve declared as defaulter by SEBI and expelled. F6 Finserve happens to be the registered broker for Kwality. Looks like the broker knew what was coming tried to make the most of it before the news came out.
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20180403-38
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Hi
Since I am new to share market its been almost 1 month , I saw this is happening the 2 nd time with the company as promoters has released the shares like this does anyone think this company is doing this on purpose and don’t care about investors money
Disc : invested but don’t know if I can trust the company
I have fully exited the company. I have huge doubts over the motive of the management to do this. First they have huge pledges and they increase it every other day. Then they just forward an email from one of the promoters claiming that their broker illegally sold their holding without explaining any further details such as what is the extend of sale and what actions they are taking etc. if you go through this thread, it is clear that this is not the first time such funny price actions happened in this stock.
Even otherwise this is an average stock with negative cash flows and the only positive being move from commodity to value-add. With such unreliable management, I did not think this was worth holding.
Tracking reality from last year when rate was 140-150 range, things we’re looking food at that time however debt of company is increasing at scorching pace which is major cause of concern. Last year there were some issues related to stock allocation to internal employees which took stock nosedive & dropped to 110 levels. Pledging is increasing, margins are dropping, things are on downward trend. Be cautious, not an investment grade stock.
Sidhant Gupta selling his stake!
Following Kwality and was impressed with what they are doing. Moving from b2b towards B2c & Value add, helping farmers thru the BOB scheme, roping in Akshay kumar and capex for more value add.
But then, shouldnt the promoters buy during this golden oppurtunity of fall in price? But instead, you have a director selling his stake during the all time lows!!!
Now, F6 Finserve, the broker who was blamed for the fall has ceased operations on 3rd April 18. So they cant blame Finserve for the sale that happened on 12th April 18.
When an insider is selling, it definitely does not boost confidence.
Disc: I’m invested, and now I’m nervous!
Pretty nervous too - thought it was just volatility but promoter stake selling is incredibly negative. I am also very confused - the stake sale showed up in block deals however it was not reported in any stock exchange disclosures (usually SEBI 29(2) is applicable for insider trades). This raises yellow flags all around - why was the trade not disclosed to exchanges - they are usually very prompt in filing acquisition 29(2) filings, so whats going on?
Are the promoters of Kwality intentionally breaking SEBI disclosure rules?
Disc. Invested, not sure for how long
I think they ve long questionable history but keeping all that aside if we see numbers , 10 year back they generated 10rs revenue on 1 RS debt, now mere 4.5 RS revenue on 1 RS debt even if u ignore recent CapEx .PAT per RS debt is even worst . So, business quality has only deteriorated. Don’t see anything good happening on receivables working capital mgmt. What makes someone bullish ? They ve b2c initiative but numbers look screwed , promoters look- the lesser I say the better . If it is about a big PE investment showing confidence, always better to go by own analysis which does not look promising from any angle n history has taught many important lessons that when business throws serious probing questions , even biggies ve gone for a toss . I had a long debate with a friend over this company n interested to know some data driven logical points on why one should invest here . I m aware what mgmt has said but m looking for how one can say it’s working in quality of BS n CF.
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Kwality has become a value trap from value investing due to poor judgement of ambitious promotors, debt has spiralled due to capex done using debt & due to stiff competition, margins, profits going down. Be cautious.
My experience in companies where capex is funded with debt is very bad, learned a hard lesson in amtek auto. It was a good company however over ambitious promotors drown all groups & now on verge of extinction. They lost a beautiful opportunity of largest OEM to Maruti. I am seeing same signs in kwality, company need to start reducing it’s debt urgently if they want to seek revival else this is very tough business & they might get killed during sleep. Had a very small tracking position from 120 levels however always had doubts over events unfolding. Business is good however management need to correct their actions till that it’s a clear avoid. We might see lower levels here if current working continues.
Probably because Sidhant is not listed as Promoter, though he is the Director. This is all crazy, full of corporate governance issues. Here is a tweet of what i mean -
That’s why without highlting other negatives, I jumped directly to debt . The 10 year history says there productive of of per RS debt has deteriorated by 60-70 percent which means its ballooning up year after year. Whether ballon will burst or not and if so, When ballon bursts is open to everyone’s one analysis n probabilities
I paid yet another tuition fees and lost 50% value believing the load of crap that management was feeding. However as the amount of holding constituted 2% of my portfolio I had to loose only 1% which is a small fair tuition fees. For all the people still holding, please note in holding a share as a minority shareholder, management integrity is the number one criteria. Otherwise the stock is not worth the paper it is printed. That’s why In my personal humble opinion certain stocks are a strict don’t touch (vakrangee, Kwality etc). Even otherwise this stock is very average with investment thesis built only around, margin expansion and B2c conversion which are all future looking.
Absolutely. Totally agree. There are several investors on Twitter who don’t tire perpetuating the thought that minority shareholders are part owners of a business. Technically that’s true. But, in reality, the interests of minority shareholders are rarely taken into consideration.
Promoters who indulge once in activities that are unscrupulous will do so again.
It’d be a grave mistake to believe management commentary. We should take their projections with a big bag of salt.
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