What the company has lost is the integrity premium. A management without integrity can do many bad things than what has been discovered so far… So, market is just willing to remain on the safe side.
Disc: Just my opinion.
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Business might not vanish in air soon… It might bounce back too, in future…
However, if Management having these kind of practice’s (Mindset) might need to recheck all Books/transactions.
Need to ask, do we like to partner these kind of people? Is there a compulsion?
Thank you.
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Reputation is the most important currency and once that is lost - it’s very difficult to regain…
Business will bounce back but reputation will take years IMHO… and so will the multiple i feel…
Management’s silence since the PIB report is deafening!
Key component of my thesis was management (fire in belly, aggression, optionalities etc.) but my thesis is broken for now… so i’m happy to exit and take my profit… i was invested since early days and had a very large position…
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Very true, price has reached where it was on 18th Jul 2023 for a reason that on the surface looks petty considering the size of annual revenue that polycab boasts of. Indian promoters seriously need to get more disciplined if they have to run wordclass companies.
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I think consumers of their products (wiremen, contractors, interior designers etc.) may not even be aware of IT raid or slump in stock price. If Polycab produces quality products, has good supply chain (distribution) and good at marketing, company will grow and generate cash and in the end investors are here to make money so they will eventually come back.
Management holds 65% in the company and 30-35% of their wealth also got eroded, I hope this will teach them a lesson and we will see better governance in future.
Also people have a very short memory span, no one will even remember this raid once stock goes back to all time high
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Vishal Khandelwal (Safal Niveshak) always keep saying that -
Best advice ever received – “Three qualities for success: integrity, intelligence, and energy. If you don’t have the first, the other two will kill you.”
Hope that, Polycab management will stay away from such unwanted things and focus on Integrity. They will grow their own wealth much faster since they may have remaining two i.e. Innovation and Energy.
Mr. Market always overreacts as that is the nature of market, which creates opportunities for long term investors. I believe things will settle soon.
No investment as of now.
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Kapur ji
Ultimately all investments are If and Hope only…
You are also hoping that all your portfolio companies do good and they will take market share , you also hope that no corporate governance issue happens in your companies, You also hope that your company products dont become obsolete and some new threat doesnt wipe out your company… Investment totally depends on IF and HOPe, no matter how much logic and study and expertise we apply…Everything boils down to IF and Hope.
We all Hope that we dont die today, so we can enjoy returns of our portfolio, But IF we die then…
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Ill like to hear from management before i take any decision and i wish people do the same before buying the dip!!
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yes, kindly share management views as and when received, please
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Brother,
Don’t sound so much negative 
Jokes apart, All investors need a bit of luck. However, well balanced and diversified portfolio should take care of these kind of events. Disciplined portfolio management should protect our capital. I have lost 60% of my profit in Polycab, but decided to wait for management update to take the final decision. Company has definetly taken a big hit on its credibility/trust/integrity. Company’s silence indicates they are guilty. One news coming out is that they underreported sales. This is some what better than fake sales. Lets wait for the dust to settle before taking any decision.
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This is the latest statement issued by Polycab to Exchanges and SEBI. They still claim that they are not engaged in any wrongdoings.
66497f46-77ba-46af-8b72-709f3ed93954.pdf (237.7 KB)
This is (i) in furtherance to the clarification dated December 22, 2023, the intimation dated December 25, 2023, the intimation dated December 26, 2023, the intimation dated December 30, 2023, the press release dated January 9, 2024 and the clarification dated January 10, 2024 provided by the Company to the Stock
Exchange, and (ii) in relation to the clarification sought by the Stock Exchange on January 11, 2024. In this regard, please see below our responses:
-
As indicated in above-mentioned clarification and intimations, the Income Tax Department (“IT Department”) officials had initiated a search proceeding at some of the premises / plants of the Company from December 22, 2023, to December 30, 2023 (“search proceeding”). The Company has fully cooperated with the officials of IT Department during the Search Proceedings and responded to
the clarifications and details sought by them. -
The Company understands that there is a press release titled ‘Income Tax Department conducts search operations in Mumbai’ published on January 10, 2024 (at 8:06 pm) by Press Information Bureau, Delhi, which does not specifically name any company. The Company reiterates that as on date, the Company has not received any written communication from the IT Department regarding the outcome of the
search. As indicated above, the Company has made intimation from time to time in relation to the said search proceeding. -
While the post search proceedings will take its own course, the Company will continue to fully cooperate with the IT Department in this regard.
-
There is no material adverse impact on the financial position of the Company.
-
The Company shall continue to inform the stock exchange(s) from time to time in relation to development on the said search proceeding.
The Company is an ethical and law-abiding company and follows the best corporate governance practices. Kindly take the same on your record.
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This was the official press release by the ministry of finance. 10th Jan
I am wondering why is polycab still refuting this. If they are right then the credibility of the ministry of finance is questionable.
Disc: invested, biased
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This is amazing… neither company is named in the PR nor any communication has been shared… = snail mail?
And there is no material adverse ‘financial’ impact… - so there is some impact??
What age are we living in!!
They are not refuting this. What they are saying is, they have not received any official communication from IT. That’s all.
IF they dont name it, that means they dont have the proof. it is just allegation. I dont think there is reason to panick.
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What can be the possible impact happen on business with this raid? Please exclude shared price…
business impact won’t be much. But PE derating might happen due to lesser investor confidence now
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If we watch company sale for past 5 years it increased from 7986 cr (2019) to 14108 cr (2023) 76 % increase in sales but trade receivable decreased from 1334 cr (2019) to 1247 (2023) -6.5% decrease in trade receivable, trade payable increased from 1520cr (2019) to 2033cr (2023) 34% why trade receivable is not increasing with sales
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