promoter is buying almost everyday
seems some sort of a ploy to me at any rate this is one of those companies you stay away from even if you are getting the shares for free.
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good question, understanding management can be tricky, but you need to look for obvious reasons and make up your mind by observing their actions periodically. In case of SOM, i came across multiple discrepancies and here are a few:
- The CMD is likely giving paid interviews which are one sided and hardly any tough questions are asked during interviews.
- Despite producing excellent results, people lack trust/confidence in their corporate governance practices. They recently devalued investors stake in their subsidy without the investors consent.
- They may or may not be on the good books of the state govts they work with. highly unpredictable business. Possibility of huge bribe involved to run their day to day operations. There have been multiple raids at their complexes.
- Things like child labor, even happening at their associate company, shows the attitude of the management and the malpractices they are open to. There might be 10 other hidden malpractices going on which haven’t surfaced yet.
Beware of such management, don’t invest your money into any company where you see even 1 red flag with the management. Here i see multiple red flags over a period of 2 years of keen observation.
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actually i was following the company and seeing results but through the valuepickr i noticed that on concall the promoters are not giving any clarify on tax rate of the company and they are just passing the questions from audience lukkily not invested and this child labour issue came up how simply they are giving clarrify on issue saying that ita there associated company never invest such companies