[Logan]

The problem is that the promoters and the management lied to us for over 8 years which shouldn’t be taken lightly. How do we trust them in the future? They’ve been promising better governance and communication for years but we’re hardly seeing any improvement. Stock prices falling and rising is part and parcel of the investing process but building trust is the most important factor. What’s the use of growth in the business if there’s no improvement in governance (compliance and communication included)? That’s like having a very good car with an empty tank.

I respected the CEO because he and other promoters (and management) have built the company from scratch with their hard work but my respect for them is decreasing day by day because they not only destroyed their credibility, name but also the company’s name and reputation with this SHP issue. Some people say that the promoters didn’t disclose the actual SHP because of the threat of a hostile takeover but what I think is that it’s all because they didn’t want to show anything negative about their company. They do stupid things that obviously bring negativity but try to hide it for sometime and when people get to know that, it’ll reach a stage where positive things never get highlighted and only the negative things appear. Who suffers when the promoters do this? It’s so easy and obvious to answer – shareholders who have invested their hard earned money trusting the promoters and the management.

DAUM issue started a few years before the CEO told the shareholders about it. It was shared only when the issue got very serious. Everyone knows what happened later. The same with the Axis Bank case. They didn’t disclose the case for months. It doesn’t matter if the issue is big or small, what matters is being honest and informing the shareholders immediately.

Companies that have committed crime and others which have huge losses are trading at higher valuations than BCG. If BCG’s management and the promoters don’t wake up now then it’ll reach a point where nobody in the market will take the company seriously. Market hasn’t taken the company seriously because one or the other issue comes up every now and then. Last year we thought the betal (like the betal in Vikramaditya and the betal) would leave our backs forever but the FA issue came and then the SHP issue. There’s no breathing space (or time) for shareholders and it always feels like this rollercoaster ride would never end. Our anxiety and stress keeps increasing each day.

Only a somewhat positive thing (I don’t like to say it as a good thing and defend them) is that they didn’t sell the shares themselves and also the shares weren’t sold at the peak. It was easy to guess that the shares weren’t sold at the peak (after January 2022 that is, when the company last reported the previous SHP) because the data didn’t support it. The total volume traded was way less and no way all the promoters shares could’ve been sold in that period (January end to March end). Again, I’m not supporting the promoters here but some people without checking the above obvious point were saying that promoters dumped all their shares during that period (January end to March end). Self proclaimed experts just to show their hatred towards the company even wrote about this in various channels without checking properly.

SEBI’s report shows that the shares were sold in the last 7-8 years. I don’t know whether SEBI will accept the company’s explanation on this. Let’s wait and see.

I think we all should ask the company to hold a conference call once the legal processes related to the SCN are done. Promoters and the management have a lot to answer and the sooner they do that, the better it’ll be for everyone. We all can’t go to Hyderabad just to get clarification every time. They have to respect the shareholders who have supported them through thick and thin. The CEO talked about this in a conference call and also when he gave the second bonus but both were not meaningful enough. He has to show that in his actions and should walk the talk.

[chris]

@whyshares yes what you are saying is absolutely true, but SEBI has not officially approved nor denied the business, it has clearly stated that as per their accounting revenues are valid, but also has said it hasn’t received audited results of all the subsidiaries. The revenue data of the standalone and subsidiaries (audited) results of the year 2022-2023, has to be approved by a separate auditor who has worked with a nifty 100 company. So if BCG follows the above said directions then I will take it as confirmation.
One major positive is that, SEBI has not mentioned that the revenues are false or money has been siphoned off, but I would wait for the results to see if it is line with the projected revenues and profits.

[Sobha]

Some of our Hyderabad friends please think of visiting Hyderabad office.

[chris]

Looking at how things played out last couple of months, I feel that the company was aware of the outcome of the audit. Suddenly, prior to the FA release they were talking of audited results of subsidiaries on the website, auditing of 80 % of subsidiary revenue.
That got me wondering, why is SKR scared of releasing audited subsidiary results ?, either there is an obvious fraud which he is hiding or the business is true and he’s worried that it becomes a take over candidate at these levels.
I personally think it’s the second, but unfortunately for him he’s been forced to publicise results now, with stock prices taking a nose dive.

[rishi]

What is the use of visiting Hyd office, skr has no intention to reveal the facts.

[akkithegrt]

BCG is trading at 1900 cr valuation,which is very cheap.It will be better if BCG is taken over by a big company. The pros will be that investors’ confidence will be restored in the company.

[buffet]

@akkithegrt:

Takeover? Do you think Suresh Reddy will leave BCG like that? This thick-skinned guy will make sure every1 will suffer and exit in the loss.

Kya se kya hogaya! Really feeling very sad for all of us. We can simply pray for better days.

[Brightspot]

@buffet you are right, as usual he is not bothered about single digit or paisa level, in the conference call he will act as if he is bothered about retailers but in reality he is thick skinned guy..even after showing that much profit he did not think of reducing debt by his company profit , lender had to sell their shares in open market to recover debt..that means retailers paid their debt..no one touch this tainted company if allegations are proved, forget about take over bla bla..so it is now confirmed that even FII allotees are selling, constant selling pressure shows that, in beweeen few groups buy and sell in crores creating volume, some retailers trap in that looking at the volume thinking it is reversing.., so now if at they will arrange conference call SKR has good reason to deny buy back because of sebi order, without any hesitation he will give that reason, such a guy he is

[akkithegrt]

SRK and his team have an 18.49% stake, which is approximately valued at 380 crores. If the business is booming and they are making 7000 crores in revenue, then any big company that is interested can buy at 900 crores for a 51% stake. Though this may sound hypothetical until it is done.

[Brightspot]

@akkithegrt we have been asking for buy back since 5 years , now he has valid reason to deny it, he will say due to sebi order he can not buy without any hesitation, you can listen in conference if at they are arranging any conference call this time

[akkithegrt]

@brightspot,today’s delivery is high,can u confirm that the same operators have created volumes,it would be of good help!

[Sobha]

SEBI banned selling by the promoters either directly or indirectly. But it has not banned purchase of shares by the promoters as far as I understood. Moreover here we are talking about company buying back. SEBI has not said anything about that.

[Logan]

People made fun of me when I said that negative market sentiment (because of DAUM, debt, corporate governance) and selling by PE, VC investors were the main reasons BCG crashed back then and we are seeing similar thing happen again. Now the market sentiment is negative because of FA, SHP (and of course corporate governance) and the selling by PW allottees and the multifold increase in free float because of giving bonus twice.

If the PW allottees hadn’t sold their shares the stock price wouldn’t have been at this level and it would’ve been above 30 or 40 or 50 (at least above 20). The same case happened when PE investors dumped their shares. I’m not supporting the promoters/CEO/Management but what I’m saying is that it’s very important to analyse the market sentiment towards any company before and after investing. Howard Marks has written a whole book on market cycles and sentiment. Even Mr.Shankar Sharma had said that the market only focused on BCG’s negatives and totally forget the positives. All these factors influence the share prices.

When there’s news like FA, SHP issues and when there’s a SCN issued to the company, no one will get the confidence to buy shares. Total number of investors increasing is not a valid point. They are buying the shares that are being dumped on them and not the shares which are in demand and hence their buying doesn’t increase the stock price.

The inaction by the CEO is the reason for all these. He gave big number of shares to traders who didn’t care about the company, it’s investors or it’s valuation and just dumped their shares when their lock in period was over.

I’m the biggest supporter of buyback and recently I had said that buyback (or ESOP) will not have much impact on stock prices because FA verdict was still pending but now the verdict has come, the company should consider those options. I don’t want them to give dividends this year and instead buyback shares. I’m sure many investors will agree with me. Last year total dividend paid was 60crs and let them use the same amount to buy back shares. At this price they can buyback more than 6 crore shares.

[Logan]

Some people are expecting a lot in today’s board meeting but looking at the past trends, we shouldn’t expect much from it. They’ll just appoint one of the three independent board members of BCG on board of BCG’s subsidiaries. I’d be surprised if any other item will be discussed. And of course they’ll share the outcome after midnight.

They should have some seriousness and should start caring about shareholders (caring and understanding shareholders’ pain instead of giving unwanted bonus shares)

[NIRAJ1]

Dear Friends,
I started buying shares from open market. I will buy daily 5k shares till my fund gets exhusted.
I have 28k shares at average prices of 36.
Last time I hold almost 7 years with all up and downs.
After FA resports it is clear that there is no fraud and all problem can be corrected..

[akkithegrt]

From Monday BCG will reverse. It should go at least till 20-25 and trade there so that it stays in FTSE.The FTSE review will be in June, but it has to go to 17-18 by 18th May as said by Mayur on Twitter.

[Vroom]

May be it will reverse maybe not. Personally, I don’t think SKR gives two hoots about whether BCG stays in FTSE or not. I have decided not to completely bungle up my already distressed portfolio by adding more of this stock.

I have held onto it since more than 10 years as once I had believed the words coming out of management’s mouth but not I will sell entire holding when SKR/operators decide to open up another round of pump and dump rally

[Logan]

Thank God, they’ve finally uploaded the audited results of 4 subsidiaries (OMS, FDM, IE & Dyomo) and have not masked the financials.

Steps like these which improve governance and compliance are always welcome (which should’ve been done ages ago).

[chris]

One way to look at this is that sebi is forcing the company to improve corporate governance standards, and if no major fines or promoter bans are levied against promoter in the final order, skr has one chance to clean up all the issues in one shot.
Provided he does not create new ones from here on.

My (biased maybe) opinion : good chance for bcg to do a clean up, and likely getting ready for the next leg. Stock under control of operator, will not be a smooth ride like last time. Expecting a lot of profit booking for sure.

[akkithegrt]

@Logan , Standing against the odds with facts makes boarders like Logan and twitter person like mayur different.

A huge respect from my side for Logan, standing alone and standing still.

I added 37000 shares yesterday at 3:45 pm, because at 3:42 pm, 27lakhs were purchased by operators and now there are pending orders on buying side.

my total count is 91k shares and at an average of Rs 9:30, I am long-term investor, but this time will book profits, once it reaches its peak.

Thank you @logan.

[Author]

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