Gepl captial
Dear All,
We recommend exit from Kitex Garments Ltd. at Rs. 455.
We had first recommended Kitex Garments on 1st April 2015 at Rs 546, then again we had recommended a buy in our top 10 value picks at Rs 914 on 17th June 2015.
Reason : Management Integrity in Question
Key Concerns :
Despite Dollar at record high levels of Rs 68 company is not able to post a topline growth. Repeatedly they had said and stick to their guidance of 10 to 15% sales growth since last two con calls.
No repayment of Debt despite having cash balance of Rs 240 cr plus. Management had said in earlier con calls they will re deem their dollar denominated investments and clear debts since dollar was at record high levels.
No update on the Merger with the unlisted entity. Nor any update on the listing of the unlisted entity.
CFO resignation with immediate effect. Company said since he got better opportunity so he resigned immediately.
No update on the con call for Q3FY16 results. MD is in USA and will be back on 6th Feb and no one else wants to comment on the results. No surety whether there will be con call after his arrival as well.
You received this message because you are subscribed to the Google Groups "LONGTERMINVESTORSRESEARCH" group.
To unsubscribe from this group and stop receiving emails from it, send an email to longterminvestorsresearch+unsubscribe@googlegroups.com.
Visit this group at https://groups.google.com/group/longterminvestorsresearch.
For more options, visit https://groups.google.com/d/optout.
No comments:
Post a Comment