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Not repetition the basic figures. Just recapturing some info that may help our friends in the group in deciding either to continue or drop off the bus. Here it goes:
1.Earnings per Share of Rs. 10/- approx. (will decrease with increased capital)
2.Bonus in August 2021 in the ratio of 1 Shares for every 4 shares held
3.Acquisition of a Company having presence in India, Europe and USA having workforce of around 1100 employees, the due diligence of the company proposed to be acquired is being done by E & Y. If acquired, will result in substantial top line / bottom line growth.
4.Debt Free Company.
5.PE of around 5.65 (Current Price 47.90)
6.PB = 0.80 (Current Price 47.90)
7.PB X PE = 4.52
8.Graham Formula suggests the PB X PE of 22.50 which is the maximum price one should pay for a stock, i.e. Rs. 238.00 in case of BCG. It will differ with every change in its performance quarter on quarter.
9.Growth has been stagnant due to shortage of working capital (industry requirement) wherein receivable ranges between 120-150 days as against the payable of 30 days. So, in order to be able to do higher business, the company needs higher working capital which they are planning to raise either through Line of Credit and / or borrowing, raising equity. Additional working capital of around Rs. 800 Cr. would help Company in achieving a CAGR of around 25 to 30% in the Top line.
10. The Company is also working on AI/ML which is at the nascent stage. Once they achieve some success in the field, it is slated to be commercialized with which company would be in a position to achieve substantial growth in it’s topline/bottom line.
11.Potential NASDAQ listing of it’s main subsidiary after consolidation of 12 subsidiaries in one company which would increase the valuation of the Holding / Indian Company.
12.BCG is yet to penetrate in the Indian Market. Majority of its business comes from its subsidiaries outside India.
13.1st generation Entrepreneur, a Technocrat from IIT Kharagpur.
Reasons for the script being traded low inspite of showing profits
1. It is only listed with BSE
2. Company’s Account with SBI led consortium was NPA and company has not been providing for interests on these loans. If interest on these loans are provided then it is actually making losses.
A detailed study is required for understanding the actual operational / financial position of the Company. Awaiting for the latest Annual Report (31.03.2021) which will clear the clouds on what is wrong with the Company.2+
Rattan India Power earning updates by the Management is attached for Boarder’s study please.
I have been following a stock Rattan India Power Limited. In summary, It is a off spring of the then India Bulls Group which came to the existing promoters on division of the group in three. The Company has a two Mega Power Projects (2700 MW), in Maharashtra one of which has become operational and posted profit last quarter. One notworthy point is that the management has successfully brought in foreign financiers to settle the dues of Indian Banks at some Rs. 4000 Crs Odd. Nasik Plant with 1350 MW capacity is likely start soon, it has come local hickups which the promoter is trying to settle very soon. The share is currently available at a cheap Rs. 8.50 (Rs. 10/- paid up). I see a potential multi bagger in this stock. Senior boarders may put in their views on this.
And, on the point of price rigging by promoters, I fully agree with your views and feel that the hammering down the stock price by Suresh Reddy as claimed by many insane boarders is absolutely a rubbish thinking coz, it harms the promoters more then anyone else.0
Absolutely right Saul. When we look at a business, we don’t only look at the past performances but also do a complete SWOT analysis before we achieve at a decision to take any exposure in the business. This is purely to ensure that your capital and interest is secured. However, in case of investment in shares of the business, you invest for appreciation in the amount invested. For me, it was always taking high risk when the business is either struggling or sometimes some businesses with apparently good financial and business model not being appropriately valued by the market for different reasons. One has to make a choice based on his/her risk taking appetite on the kind of stock, they should take exposure in. Although, I am growing in age, but my investment strategy remained the same as it was when I was 18, catch them young.0
Dear Goodman, I have been a member of this group for quite simetime and observing all the msgs. You have done a commendable work by posting your research on BCG. I am also a long term investor and generally remains invested for long. Although, I dint knew much about BCG, but on hearing about the company way back in 2013-24, I did some research on the company from a banker’s point of view and found the company to be very interesting for investment. And, since then , I have been investing in the company as and when I have free funds. I will not talk about the prices and quantities here. I believe in catching boys when they are young. Few examples would be, TVS, when it was making losses in 80-90s and was available at 15-16. Pantaloons in 2000-2001, when it was available at 15-16,BEL, Jai Corp and many mores. All these companies had there roller coaster after my investments and had had peaked at very respectable prices. Does not mean that I was successful all the times. Had had certain investments which failed miserably, like Karuturi, Favor and many more. Summarily, it is not necessary that all investment decisions of someone will right, some may go wrong as well. One need to have patience and keep itself updated about the company wherein it has invested. I am still invested in BCG and I do keep adding as and when I feel the price to be comfortable and have free funds. Keep up the good work friends.1+
As regards today’s Block Deal of 45L Shares, both, the buyers and sellers belongs to Goenka’s of Kolkata. Appears to be from the same group.0