10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Friday, May 7, 2010

Alchemist Ltd :-Buy/sell/hold,growth prospects and recomendation,news and results,target price and analysis,views and outlook

Scripscan:Alchemist Ltd

Story:This is a company which changed its name from Toubro infotech to Alchemist limited and even the business opeartion.Presently its striving too hard to make a brand image for itself.Infact its trying so hard that sometimes back it went on to sponsor the federation cup.Now here is something which is set to raise your eybrows.

I recall 5-6 years back ths company was 'selling' its debentures for which a network of around 7000 agents had been established.These agents targeted mainly villagers to whom it was promised that their money would become ten times within 13 years.The company also issued post dated cheques to its investors.Apart from the attractive offer to its investors a high rate of commission,gifts and tour packages were also promised to the agents who met the specified targets.The result was after collecting a huge sum of money it duped the most and several cases were filled against the company.The police never got hold of its MD Mr K.P Singh.Despite several visits, no senior official was available for any commnets.The company further mentioned that it got a "A" rating from some credit rating agency which even the SEBI objected.So as expected the company was going to become a sick company due to failure in software business, cut flower business and because its "account was sealed".

Now its 2010 and alchemist is moving places.From 2005-06 onwards it re-aligned its presence across two businesses - agri-business and pharmaceuticals.Every segment of the company has started doing wonders.Infact it would be prudent to note that the company has rewarded all the stakeholders with bonuses,hefty dividends etc.To command better valuation it even reversed splitted its shares from FV 1 to FV 10.

From a dubious toubro infotech which was expected to be a closed company its now the flamboyant 400crs company,Alchemist limited.The last director report mentioned it still has got a fixed deposit of over 30crs.Everyone is giving mind-boggling targets for the scrip as its doing all the rite things,moving into sun rising businesses,delivering great numbers.

But as we say"Time will discover everything to posterity its a babbler and speaks even when no question is being put.I really pity the guys who have put their hard earned money on to it,atleast on the fixed deposit side.I mean just feel it, once you have been duped and again the same mistake has been done from your end,A companys image is just like a glass once broken it never comes back to its old state.

I have really got no idea how Alchemist managed to be the one that we are talking about.How can a company be allowed to do these?Maybe it rejuveneated,maybe it realised its mistake,maybe its now commited to create a hell lot of shareholders wealth,But what about the people to whom it laundered the money?Will they ever get the money back?Will they ever be compensated?And all said and done is there any guarantee that history wont be repeated again?

i can be reached

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner