Promoter started increasing stake again today and yesterday.
Disc: Invested at 140
Is patanjali going to invest in nandan denim or have a tie up with nandan denim… this stock has not moved since long time… any views?
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This stock has been falling the past 2 days despite the fact that the promoter has been buying from the open market the past few months and even yesterday:
Disc: Invested
Looks like something is cooking here, promoters buying, the same investment fund which were supposed to be issued warrants bought shares in open in Dec end and Jan.
Did any1 attended the earnings concall…Unable to get the transcript. Your help will be really appreciated, thanks!
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Why promoter is buying daily , is he trying to provide support to the price ? Is he trying to increase stake at attractive valuation ? Is he trying to invest access cash in the company ?
Need to find the reason for buying stock by promoter.
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cotton prices are very high and does not bode well for the stock…
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The promoter is buying every now and then, but in small quantities. In December-2018 alone, increased to 1%.
On technical front, the stock is making lower lows and the supply is reducing.
Disc: Holding a tracking position.
Is anybody tracking this stock? It looks very cheap at just around 0.2 price to book.
Why i started in investing in the scrip
The market size is huge of Apparel and clothing and Nandam denim has fourth largest capacity for producing the denim in the world .
The market is growing at 7-9 % annually and the role of unorganized players are more than 70% .
This give a boost as a retail investor
The company has finished it’s capex plan and continually paying the borrowing and reducing the debts
- Market Cap₹ 93.7 Cr.
- Current Price₹ 19.5
Sector is highly stressed and lot of the small players vanish out
FI limits increased from 24% to 49%
2009 vs 2020 : Gross block 255 —> 943 and Sales also increased 5X
Promoter holding Dec 2017 60.65% —> 64.73%
The inventory turnover and lower raw material cost will immensely help the company in the coming years
Some negatives
- Low productive labor and labor unions
- The fire broke twice in this year due to short circuits and that make the stock to slide and in one incident 7 people were died.
- Debtor day increasing.
Disc: invested recently
I’m not very well acquainted with the current scenario of the company but I have tons of friends who’re in the textile industry and I must say, the reputation of the promoters is NOT good in the city. My friends often joke that one of the brothers is always in jail due to some tax fraud, while the other one is all set to go in once the first one is out. Back in the days of octroi, the promoters would lock and beat up the octroi officers when they’d come for checking.
Regarding the fire that broke out recently during Covid, the RUMOUR is that the management did it on purpose in order to get the money from insurance since they felt that the goods wouldn’t be sold considering the state of the economy.
The company is indeed one of the biggest names in the industry in the entire world. Looking at the stock price, it definitely does look like a lucrative Investment. However, the promoter integrity is something that makes me stay away from the stock. I’d suggest you to do your own dilligence as well.
Disc : Had a position a couple of years back, booked because of the same reason that I highlighted.
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Being in taxation and closely working with CA advocates regarding assessment of business and field checking during VAT I come across 90% case mainly in hosiery or textile originating from second hub I e ludhiana there was always undervalue reporting on the bill builty or in invoices and mostly they are from unorganised small time traders but if one speak of BRANDED there might be some cases but I couldn’t remember a single case of finding goods transported without bill builty or invoices…During VAT times there was no provisions to lock the trader behind the bars only when one company is prosecuted under land revenue act may has to go behind the bars … … You may be right about your observations… Trident group reliance group and many more instances of business which is run by … yet they flourish… if you bet with some stop loss in mind as well in your discipline of investing . No gyan is permanent in the world of investing and every opinion must be questioned and people have their own agenda of putting the things and different lens to see the things . I had allocated 2% of portfolio thanks for your feedback appreciate your effort. I will try to dig more from the available sources
Repgards