Thats what we are doing,But Those who got trapped in Vikas Wsp 9 years back know what it is Best company which seemd fundamentaly got delisted Promoters were fraud.However Mind Understands that SRF no way near vikas Mgmt.However recently a month a analyst met me from top Venture fund He was telling SRF promoters are fraud and so when i told him that SRF is my top buy I dont know why SRF is badnaam in the analyst community I think it has something to do with earlier Promoter shareholding problms if u all know or not earlier DCM ltd was promoter of srf In their family partition SRF went to Arun Bharat Ram But due to financial problms in DCM ltd promoters had to sell their equity and it came under very small holding From then Arun Bharat Ram has increased holding to 45%+ now.While doing so i think not the best investor friendly policies have been followed like the recent acq of SRF polymers loss making biz for 150 cr.Somehow now the Loans on personal level are under control as we can see in No af shares redeemed from Pledged.Now We can expect better Corporate governance from MGmt.However to please aNalyst will take time.Hope things happen fast.
Amkan, I don`t know what is your background with regard to corporate India, but you should know that the DCM group has given a large number of topmost leaders to Indian industry, including retired and currently serving CEO`s of some of India`s largest companies. So many of them started at DCM, and even today can proudly claim that the DCM group always operated with 100% integrity and ethics. It is another matter that the empire slowly crumbled and many businesses gradually went into losses and some even folded up, but nobody could ever claim that they were not honest or that they cheated anyone. There were many problems when they sold their land in Delhi, mainly related to getting permissions, but eventually it got sorted out and everybody got their plots. By the time they got the plots, the prices had moved up many times and everybody gained. In SRF itself, you can see that they don`t play the market game at all, and are least bothered where the share price goes. Their main interest is running the business well, giving dividends, and whenever possible, go for buybacks. Everything is done transparently. From 2003 till now, the share price has gone from Rs. 18/- to 200/- and shareholders have received excellent dividends too.
If I have to rate SRF promoters with regard to ethics and corporate governance,I would rate them at par with the Tata group.
The way the company is performing, paying liberal Dividends, I feel like agreeing with Comatose. However, there appears to be some communication gap, which gives scope for doubts. One of them is not disclosing the contribution of carbon credits in quarterly profits. Second,instead of adopting out right share holder friendly policies such as declaring bonus, the company keeps on announcing buy backs. While buy back helps to protect share value, it also helps promoters to raise their stake in the company. Hence for being considered at par with Tatas, SRF promoters have to do things differently. Anyway, I agree with Comatose that the promoters are honest and they have not cheated any one.
CB, if you are making something for one Rupee and someone is paying you two to just burn it, would you like to talk about it ? The silence on CER`s should be understood, not talked about. Anyway, this bonanza ends in 2014.
indian market is not considering the valuation of cer or carbon credit money which are encashing by the companies with the stock price,those companies which are utilizing the cer money in the expansion and diversification shall be awarded in long term,by 2014 srf ltd eps will cross 100/- or 150/- or may be more on their working.
I do agree that i am not connected to top corporate honchos like the way u said u are but however i just have to say that ABR for raising his stake in SRf ,which was disposed by his siblings while managing the crunch at DCM did take certian decisions which were not the best of interest of shareholders at that time,take the example of SRF acquiring EnGG plastic biz (loss makinG) of SRf polymer at 150 cr.Tell me how do you justify that
Amkan, even I am not connected with anyone, but the news of various companies and groups often gets heard at various places.
Regarding buying of the SRF Poly assets, I would go along with their explanation, which was :
1) International bids were invited (Through reputed consultants).
2) The SRF management looking at the best bid received, decided that it would be worthwhile to buy it for SRF instead of giving to the foreign buyer, at that price.
3) They are confident that there would be additional top line and bottom line growth with these businesses.
contd. previous : According to SRF, the main reason why that business was loss making was lack of finance and inadequate marketing set-up at SRF Poly, both of which are not a problem for SRF.
Dear Comatose,I understood the logic behind the decision only after I interacted with you on MMB. Prior to that in my mind also doubts were there regarding the purchase of Engg plastics division from SRF Poly. Because the company never bothered to come up with a convincing explanation, even when Media cast aspersions on the decision. The company needs to communicate properly with all stake holders. As I mentioned earlier, lack of proper communication is the main reason for the misunderstanding of SRF.
Smilehit, My suggestion is just forget that you have this stock in your portfolio. Don`t think of selling at less than 2000/- . Believe me, it will come sooner than what you can imagine.
Karshin, could you let us have your take on ethics and integrity in the DCM group in general and SRF / ABR in particular. As you have seen them from close quarters, your views would be useful to all of us, Thanks.
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