26 11, 2015

JP Morgan Might Offload Amtek Auto’s Troubled Bonds to a Vulture Fund at a Haircut

By |November 26th, 2015|Categories: AmtekAuto|0 Comments

Amtek Auto’s bonds have been held by JP Morgan AMC, now in a segregated fund. The 200 crore worth bonds are it seems, in some kind of a deal with a vulture fund, SSG Capital Management. (Source: Economic Times)

While SSG plans to directly buy out the Rs 200 crore debenture holding held by JPMorgan, Amtek intends to settle the issue of the remaining Rs 600 crore […]

10 11, 2015

Premium: Dr. Reddy’s stock tank – Here is a breakup of what happened

By |November 10th, 2015|Categories: Dr Reddys, Premium, Stocks|0 Comments

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Dr. Reddy’s Lab tanked on Friday and then again today, after news came out that involved US action against the company.

The stock has been in news for 2 different reasons:

  1. On Friday, USFDA (Food & Drug Administration) issued a warning letter in relation to the for the inspection performed API manufacturing facilities at Srikakulam, Andhra Pradesh and Miryalaguda, Telangana, as well as the Oncology Formulation manufacturing facility at Duvvada, Visakhapatnam, Andhra Pradesh. This is following the issuance of Form 483 containing the observations made during the earlier site inspections and the subsequent remediation plans submitted by Dr. Reddy’s.
  2. On Tuesday, the District Court of Delaware, USA granted in favour of Astra Zenecaand issued a Temporary Restraining Order for the sale, delivery, transfer or other disposition of its generic esomeprazole capsules (which reduces stomach acid secretion) in the US market. AstraZeneca happens to be the manufacturer of Nexium which is similar to Dr. Reddy’s esomeprazole capsules.

Let’s take a look at the stock as such:




2 11, 2015

Network18 Takes a 380 Cr. Hit On The Shady Senior Professional Welfare Trust Loan, A Further Provision Is Likely

By |November 2nd, 2015|Categories: Network18|5 Comments

Network 18 has finally realized that it’s “Senior Professional Welfare Trust” that owes it more than 550 cr. is mostly a dud borrower. After giving it that much money as a loan, the company has now had to write off Rs. 380 cr. as a provision because they are unlikely to recover money from it.

Let’s recap:

2 11, 2015

Premium: Sun TV’s Buyback Likely To Be A Tender Offer, Promoters Likely To Take Out Cash

By |November 2nd, 2015|Categories: BuyBack, Premium, Stocks, SunTV|2 Comments

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Note: This post was sent to Capital Mind Premium subscribers on 02 Nov, but we’ve made it open for everyone. Do take a look!

SUN TV is going to meet for a buyback offer, probably soon. But there is a fundamental problem in a buyback: The promoter, Kalanidhi Maran, already owns 75% in the company, […]

29 10, 2015

Nestle Sees a 60% Drop in Profit as The Lack of Maggi Continues To Hurt

By |October 29th, 2015|Categories: Stocks|Tags: |2 Comments

Nestle’s been badly hit with the Maggi controversy and continues to be in bad shape. Profits are down 60% while revenues fell 32% (year on year) in the quarter.

(Figures are Rs. Million)


They have apparently resumed production of Maggi and are awaiting […]

26 10, 2015

Airtel Has Lowest Indian ARPU in 8 Quarters, and Boosts Consolidated Profits Only By Exceptional Item

By |October 26th, 2015|Categories: Bharti, BHARTIARTL|3 Comments

Bharti Airtel announced results today and it seems like things are quite tough for the telco.


While this sounds good (at least they are making a profit!) there are some serious problems with the above:

12 10, 2015

Infy Results In Charts: Profits in Double Digit Growth, Higher Efficiency, Makes It Fairly Valued

By |October 12th, 2015|Categories: Infosys, Infosys|Tags: |Comments Off on Infy Results In Charts: Profits in Double Digit Growth, Higher Efficiency, Makes It Fairly Valued

Infy‘s results were today, and we present them in charts.

Revenues Up, Profits Up (Finally)


The rupee has also gone from Rs. 61 last year to Rs. 65 this year which is a 6% tailwind for them. They say they’ve hedged a fair amount […]

22 09, 2015

Amtek Auto Defaults on 800 cr. bonds. A View On The Tricky Recovery Process.

By |September 22nd, 2015|Categories: AmtekAuto|5 Comments

And the expected has happened: Amtek Auto has defaulted on its 800 cr. of bonds that were due on Sunday. They had till end of day yesterday to pay up, and they didn’t make that payment.

For a bank holding the bonds this account is technically not an NPA until 90 days is over. So they can extend and pretend and hope that Amtek manages to salvage itself. Since […]

15 09, 2015

JP Morgan AMC Isolates Amtek Bonds Into A Side Pocket, Will Allow Redemptions of the Rest

By |September 15th, 2015|Categories: AmtekAuto, MutualFunds|Comments Off on JP Morgan AMC Isolates Amtek Bonds Into A Side Pocket, Will Allow Redemptions of the Rest

JP Morgan, which has been in the news because if refuses to let people exit short term funds (currently has a gate of 1% per day), has now offered a redemption proposal to “segregate” its funds.  The Proposal is complex but basically it’s like this:

14 09, 2015

Kesoram Sells Tyre Subsidiary to JK Tyre 1month and 5 Days After Vehemently Denying It Would Sell Tyre Subsidiary To JK Tyre

By |September 14th, 2015|Categories: KESORAMIND, Tyres|1 Comment

Kesoram Industries’ press release, August 7:


“Nonetheless Reiterate”, “No Intentions” – means: Oh come on, there is no way we are selling.

And then, on September 12:


The Chart says People liked it in the morning today, […]

14 09, 2015

Amtek Auto Management Clarifies, Stock Moves Up, But Drama Still Ahead

By |September 14th, 2015|Categories: AmtekAuto|Comments Off on Amtek Auto Management Clarifies, Stock Moves Up, But Drama Still Ahead

The Senior MD at Amtek Auto, John Flintham, was on ET Now for a clarification of what the situation was:


So what he’s saying is:

7 09, 2015

Zee Promoter Company Borrows 2,200 Cr. , Has No Cash Flows, Negative Net Worth, Rated A+ on Shares Pledged and Franklin Templeton MF owns 800 cr. of That Debt

By |September 7th, 2015|Categories: ZEEL|Tags: , |54 Comments

Why are we so trusting of rating agencies? The recent drama with Amtek Auto and the restriction on redemptions to 1% by JP Morgan AMC on two of its funds is a glaring example of where rating agencies have failed to identify problems early.

In two more examples, it’s apparent that rating agencies have rated debt very high when they shouldn’t at all be given that kind […]

4 09, 2015

Amtek Auto Down Another 36% on Thursday as FIIs Dump Stock

By |September 4th, 2015|Categories: AmtekAuto|2 Comments

This Amtek Auto story continues to worsen. First, it fell 60% when it was removed from futures and options, and earlier, downgraded. And then, two JP Morgan AMC short term debt funds that held about 200 cr. of its debt saw a fall in their NAV and cut redemptions to 1% per day.

On Thursday things REALLY went wrong, and the stock fell a further 36% from […]

30 07, 2015

Suckered: Castex Goes From 40 to 360, and Since Then, No Buyers.

By |July 30th, 2015|Categories: Castex, Suckered|18 Comments

So there’s this stock called Castex Technologies.

Let me introduce you to this chart:



The stock rose from Rs. 40 to Rs. 360 and then, it’s been limit down (5% down per day) since. With next to no volume.

The company is in […]

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