Very well put, bro! A lot of research has gone into this. Do you think a buyout could possibly be on the cards in the future? Given that banks/financial institutions are holding 27% of the shares, in case during a bad market the supply chain gets disrupted and the shares tumble further?
On the buyout piece, looks unlikely. The promoters recently raised money through private placement to invest in the biz & it doesn't seem like they would be interested in selling the business.
Also, FII / DII holding is less than 5% as at 31 December 2024. Where did you get the 27% shareholding data from?
“27% of the shareholding is pledged with banks / financial institutions — which can trigger a larger sell-off in the stock in case it falls dramatically.”
Nah nah, those are shares which are owned by the promoters but pledged with the banks as a security to take a loan.
So what happens is, if the company doesn’t pay the loan, the banks can sell these shares in the market and recover their money — which could trigger a fall in stock prices. In case the loans are paid, nothing really happens.
The probability of a buyout therefore is quite slim. It is however a concern whenever promoters pledge their shares with banks. In general, that signals weak liquidity.
Great work man
Thanks bud 💪
Very well put, bro! A lot of research has gone into this. Do you think a buyout could possibly be on the cards in the future? Given that banks/financial institutions are holding 27% of the shares, in case during a bad market the supply chain gets disrupted and the shares tumble further?
Thanks bud, it means a lot!
On the buyout piece, looks unlikely. The promoters recently raised money through private placement to invest in the biz & it doesn't seem like they would be interested in selling the business.
Also, FII / DII holding is less than 5% as at 31 December 2024. Where did you get the 27% shareholding data from?
https://www.screener.in/company/VINCOFE/consolidated/
Ohh, was referring to this part from the article.
“27% of the shareholding is pledged with banks / financial institutions — which can trigger a larger sell-off in the stock in case it falls dramatically.”
Nah nah, those are shares which are owned by the promoters but pledged with the banks as a security to take a loan.
So what happens is, if the company doesn’t pay the loan, the banks can sell these shares in the market and recover their money — which could trigger a fall in stock prices. In case the loans are paid, nothing really happens.
The probability of a buyout therefore is quite slim. It is however a concern whenever promoters pledge their shares with banks. In general, that signals weak liquidity.
Fair enough, makes sense. Appreciate you explaining this bro 🙌🏼 keep writing more
Thanks bud! Keep asking these questions, it helps me grow as well :)
whats your opinion on the increasing receivable and inventory which lead to negative CFO?