Kapil Madan, one of Indian Stocks News readers had commented on my year old article, Small Cap Stock Analysis - SEL Manufacturing and asked me to post my recent views. Taking this opportunity to revisit the article and renew my opinion with a few latest facts.
---Kapil's comment---
I could figure out that you wrote this analysis almost an year back when share price of SEL was 67 a share. In the last one year, the share price has seen much ups & downs, specially in the last one month or so. Promotors holdings is going down as well. Also company is coming with an IPO in future. I read somewhere that more than 80% of the equity (other than that of promoters) have changed hands past one month!!
Amidst all this, whats your views now on SEL. I am sure 2010 balance sheet is now available for you to review. I and many small & medium investors are curious to know your view on this.
Personally, i do not hold any shares of SEL, but definitely planning to acquire some.
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Another regular reader of Indian Stocks News, Devkinandan, have commented on the same:
SEL March 2010 Equity - 30.35cr.
net profit- 7.79cr.
EPS Qtr - 2
Promotors holding Mar 08 - 64.5%
Dec 08 - 57.27%
Sep 09 - 47.43%
Mar 10 - 38.67%
Promotors lagatar apni holding decreas kar raha hai.March 10 quarter ka net proffit March 09 aur Dec 09 ke adhe se bhi kam hai.DEBT ke bare main Vinay Bhai ne bataya hi hai.
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I just had a look at SEL's latest result ... it says that promoters shareholding is now 19.45% (yes ..it is nineteen). Promoters shareholding is 19.45% and rest 80.55% is with aam aadami (retail investor).
You may have a look at the latest SEL manufacturing Results here.
The debt on company in March 2009 was Rs. 623 crores. I do not know how much it is in 2010 as I did not get to see it anywhere. But I did get to see that Rs. 34.50 crores was the interest paid by company on it's debt as on DEC. 09 in nine months result.
As Devkinandan has pointed out about constantly decreasing promoters shareholding and looking at the latest figures, I don't know why anyone would like to risk one's hard earned money to buy stocks of SEL Manufacturing. Do you want to help promoters in offloading their stocks?
