Satya's Weblog

I was checking HIL Ltd. This is CK Birla Company. Brand wise it is a very good company as you can see in this image. Growth in recent quarters are very strong and margin is improving from many past quarters. This has caught my attention.Sector is also very Hot - Roofing solutions and building materials.



Recently in Mar, 2018 quarter, HIL Ltd has not declared the consolidated result. It says that JV is not in its control and asked for exemption from Ministry. It has received the exemption.

Again after that, it has given notice on 7th June, 2018 for the investment for Rs 1000 cr which is a very big amount. They mention the intention for this amount as below:

1. To make investments or to give loans or to give guarantee(ies) or to provide security(ies) to other companies or body corporates upto Rs. 1000 crores as per provisions of Section 186(3) of the Companies Act, 2013.
2. To borrow funds upto Rs. 1000 crores, from time to time for the business of the Company as per the Section 180(1)(c) of the Companies Act, 2013.
3. To create security on the properties/assets of the Company, both present and future, in favour of lenders as per Section 180(1)(a) of the Companies Act, 2013.

The above text is mentioned on BSE announcement but PDF document attached does not mention this. I cannot see this.

This line is not clear to me. If it was investment then it was easier to understand. If it is going into those JVs for which company has not given Consolidated statement this quarter then what is going with those heavy investment can remain unknown to us. Rs 1000 Cr is not a small amount for this company's size.

To make investments or to give loans or to give guarantee(ies) or to provide security(ies) to other companies or body corporates.

Therefore, I IGNORED it as investment stock.

Comments are welcome in support of or against the investment rationale in HIL Ltd.

Worth buying Bhansali engineering, Rain ind, IFB agro, and CMI ltd. Buy some Yash Papers to test waters.

I had all small Cap stocks prior to correction. Few I sold at loss and few are still with me. After correction, I still have small caps only.

Sold:
Sanwaria Consumer,
Himalaya Foods International,
Thirumalai Chemicals,
Vikas EcoTech.

Have:
KSE Ltd,
Avantel LTd,
Dhunseri Petro,
Ashapura Intimate Fashion,
White Organics.

Sanwaria, White Organics, and Himalaya Foods are bought due to Patanjali and consumer facing stocks. Sanwaria Consumer sold at heavy loss due to news about its many things not matching up. Also, Sanwaria as given wrong result data at the start of April but given Audited result at the end of May. Also, promoters selling in past two quarters has taken my confidence at this blood bath market. Himalaya Foods also sold due to many not satisfied with its promoters commentary. I was threatened in this tough market which has started from end of Jan or start of Feb, 2018. But Himalaya was showing very strong upward trend on price chart. Not taking about technical analysis but general view.

Vikas Ecotech also sold due to management. Number was not as per liking but every time they say some positive things.

Thirumalai Sold due to higher Crude Oil price. Crude oil prediction is very though and it is tied to that. Even after high oil, its result for Mar, 2018 was very good. Market was expecting more than that. But very good doing company.

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In recent past many goof-ups has taken a toll on market especially in small cap. PSU Banks one after another giving reason to sell Indian market as this shows corruption and mismanagement at very high scale.

Vakrangee and PC Jeweller problem and then one after another Auditors related problem or problems companies have and promoters denied to hide has created very bad sentiment in market.

SEBI Additional Surveillance Measures (ASM) list has created another wrong sentiment for the market especially for small Cap. List was out before SEBI has published in market. Few operators taken advantage of it and created pressure on it to sell on high. It is a cheating and retail investors who are threatened from loss from Jan 2018 are forced to sell who were still holding it.

Sanwaria Consumer was also put in ASM. As the list was leaked so Sanwaria was on Lower Circuit from few days before list came into public.

Thirumalai Chemical has recovered very fast. and it is not having problem regarding management and promoters. But it depends on Oil price.

Worth checking this for buying this strong correction.

Garnet International has published March 2018 quarterly number. Many investors were bullish on it 1-2 quarters back. They were talking about quality of it. No comment on it. I have left it after initial checking.

This is Just for Info and 

Today, I noticed that it has gained a lot sometime back but corrected stronger. Also, special is Mar quarter result.

See the price gain of Garnet International from Dec 2017 to Jan 2018. In two months, it gained three times. Later corrected even prior to stable price. Indian stock market is very dangerous.
Good that I did not followed blindly to few better looking intelligent investors. They may have come out on time but I may have lost heavily. What a fast meltdown!




Mar 2018 quarter result is special as all went into expense. All went into Purchase of Stock in Trade. May be later, it can benefit. (Result on BSE - pdf)
Consolidated Result:


There are many insider trading in past few months. Mostly on acquisition side. If you know strong point of it then you can inform us.


It was just a blah blah on a stock. Not for thinking on investment.

KSE Ltd result is out for Mar 2018. Very good result came in all three segments.

In all dept, company has done very good.
Animal Feed has given far better margin and Dairy division came to profit from loss.  

Company plans to buy land at industrial unit near Mysore, Karnataka for Animal Feed production. An understanding has been arrived.

Best to add/buy at current price. Very good looking stock.

I mentioned it at Rs 2726.

CMP of KSE Ltd is Rs 3668.