http://www.screener.in/company/?q=524210
Most of the numbers look awesome:
P/E = 2
)- Stock is providing a good dividend yield of 7.05%.
)- Stock is trading at 0.64 times its book value
)- Company has a good return on equity (ROE) track record: 3 Years ROE 43.80%
Promoters were generous in offering a bonus of 2:3 to non-promoters, to bring down their stake to 75%;
The ROIC & ROE numbers indicate some kind of monopoly, but the prices are so low that monopoly should not matter.
Risks:
)- The stock has been beaten down by the markets for the past year by over 70%, indicating someone is selling a lot. I couldn’t find any types of fraud mentions in Google, so I’m not sure what’s going on here.
)- The MD is selling his stocks to the promoter group company, which is scary, given that he has more info than we do. Might not be a bad thing if the MD controls the promoter group company - but don’t have visibility into that.
Does any of the valuepickrs have any info about what’s going on with this company?
Thanks,
-Prasanna