Interesting charts, data points and investing perspective
A data-backed thread 🧵
Favourite: There is always a reason to sell
Whenever such events occur, we feel it is a time to invest through mutual funds (Why not equity? Because you don't need to worry about ab konsa stock/ sector chalega)
Despite several intermittent crises, Indian Equities have gone up over the long run mirroring earnings growth
On Dec 5, SEBI dropped a bombshell: an Interim Order cum Show Cause Notice against Mishtann Foods (MFL).
Here's a thread 🧵
Mishtann Foods is not just cooking rice, it's cooking its books.
#Redflags #corporategovernance #mishtannfoods
The Rise and the Red Flags 🚩
Market cap: ₹1600 Cr as of Dec 4, 2024(Before SEBI Order)
2 Lower Circuit of 20% in last 2 days
Public shareholders surged 800x in 6 years
(FY18: 516 → Sep 2024: 4.23 lakh)
Promoter Hitesh Patel sold ~3 Cr shares (₹50 Cr) in Jul-Aug 2024.
Before Analysing,
Some Suspicious Metrics 📊
₹1288 Cr sales with just ₹3 Cr in fixed assets (Asset T/O: 400x!)
Margins jumped from 2% to 28% in 4 yrs
Operating cash flow? Negative for 6 yrs
₹16 Cr inventory for ₹1288 Cr sales?
Just 5 permanent employees.
Before we move ahead, Beat The Street has been front runner in exposing multiple frauds, redflags and conducting forensic analysis on multiple listed entities
Also if you are looking for bespoke Forensic Analysis and Services please email us to contact@beatthestreet.in
We have doing it for free so that retail investors can learn
Please do consider taking our handle to a larger investor..!!
Fund Diversion
Beat The Street have raised multiple concerns on fund diversion at Varanium Cloud - some of those have been noted by even SEBI also.