JP-The Death Of A Concept stock
About 7-8 years ago, at the height of the previous cement cycle I knew a fund manager at the Reliance Vision Fund. So while parking my car at the University Station of the Metro, I called him up just for some casual banter. Out of that emerged a entity called JP. The price was a Royal Rs 1500, the company had declared a Bonus, split and Buy-back and had as much as a few crore shares into Treasury.
Our fund manager was ebullient. Only I was uncomfortably not Buying the optimism. You see in the Winters of 1987 I often used the dark, rotund figure of the Elder Gaur standing in the parking lot at Basant Lok, hurling the choicest expletives at his employees. We were young and would often stretch our lunch break another 5 minutes just to hear the growling beast and laugh thereafter.
The baton then passed on to the scion, who was pally with Madame Maya-Yamuna Expressway was launched, a F1 circuit track laid and a Rs 800 Bn Ganga Expressway was on the anvil, which would connect East and West UP.
By this time the young Mr. Gaur was flying, buying or setting up cement capacities all over. The shock came when his post everything stock opened at Rs 200, down from Rs 1500. The fund manager who now handles a offshore fund was no where to be seen,
Debt at JP had gone to Rs 400 Bn, and there were no numbers. Then asset sales started, which became fire sales and then parking lot sales. Almost all Cement units got sold, but the debt remained there, The stock today stands at Rs 8 and is being recommended heavily.
My only thought, I have no knowledge of anyone coming back from Death. JP is one such entity and remain so.
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