stock market for promoters inability/laziness
or their negative attitude towards other share
holders wasting chances of immense wealth
creation. Gandhimathi Appliances is such a story.
Gandhimathi is making household appliances
like LPG Stove, Pressure cooker, Mixer
Grinder ..etc in the brand name 'BUTTERFLY'.
This is the No.1 brand in case of LPG Stove in
market share in other products. But the
financial side of this company is not a
robust one. We can’t blame anyone who
suspect that the promoters are siphoning
of funds generated in this company and
divert the same to companies privately
owned by the same/related parties. Presence
of other companies of promoters in the same
line of business is a real misfortune to the
minority share holders of Gandhimathi
Appliances.Any way , earlier this company
went for BIFR and later as per a scheme the
promoters bring more funds to the company
to revive it. Now ,company is going
to merge another group company
Gangadharam Appliances with itself
and final decision regarding merger
ratio ..etc are expecting soon. It is expected
that after the merger is completed company
will sell its surplus land and pay back dues
to strengthen its balance sheet. Some of the
recent indications from the management
giving some hopes about the change in the
attitude of management. I suspect ,
the huge wealth created by peers like TTK
Prestige and Hawkins
Cookers in recent past may also be a reason
for a second thought for the management of
Gandhimathi. If the management is really
willing to change its attitude and ready to
consolidate its operations in the listed company
and show good corporate governance
the scope is very vast and this may be a
multi bagger even from current level. Since
its future is depends on many ‘IF’s only high
risk takers can consider this .Now it is
trading around Rs.73/-
* Earlier discussed in MMB around Rs.55/-
0 comments:
Post a Comment