JBF Ind ~ From Rs 300 to Rs 169 ~ KKR Investment destroyed 44% inside two months

JBF Ind ~ From Rs 300 to Rs 169 ~ KKR Investment destroyed 44% inside two months

In July 2015,it was decided that KKR Private Equity led by Sanjay Nayyar,ex Citi Head would infuse @ US $ 150 m  in the JBF Group through a preferential allotment

On Cue on July 31,2015 the 52 Week High of Rs 318 was recorded

It’s been downhill since &  is currently at 52 week lows of Rs 169

The Preferential allotment took place in end December 2015 with KKR Jupiter Investors Pte Ltd as below & when the Market Price was yet respectable at Rs 245  :

  1. Rs 491.23 crs Invested in listed JBF Industries through 16374370 shares at Rs 300(Rs 10 FV + Premium Rs 290) to acquire a 20% stake of post allotment Equity of Rs 81.87 crs
  2. Rs 500.65 crs Invested in JBF Global Pte Ltd,a wholly owned subsidiary of listed JBF Industries,through 12210527 Compulsory Convertible Preference Shares equivalent to US $ 75649902

KKR nominated Nikhil Srivastava on the Board….would be interesting to be a fly on the wall during Board Meetings now!

JBF Industries also has six step down subsidiaries through it’s  wholly owned subsidiary,JBF Global Pte Ltd based in Singapore

Through one of its step down subsidiary, JBF Petrochemicals Ltd, it is implementing a 1.25 m tpa greenfield PTA Project at Mangalore which should be completed in six months although it was expected to be completed in FY 16 as expressed in the FY 15 Annual Report

So what do you think ?

Did KKR pay an inexcusably high Rs 300 per share for it’s 20% stake ?

Do you sense an Opportunity at Rs 169?

Bumped into the Guy whose firm advised on this Placement at Rs 300 & I asked  him how did they manage to make a sucker of KKR !

He said it’s a “No Brainer” !

🙂 Wonder if he meant it’s easy to make a sucker of KKR or that it’s a great opportunity to buy now in the secondary markets !

KKR ,you guys should have touched base with me before deciding on this Investment !

Don’t tell me you don’t know who played this Scrip in 2015!

 

Mumbai Equity Workshop Sat June 22 2019 ~ Sensex at 40000 ~ Treasures & Traps

The last Seven Workshops have seen a Full House  & great interaction 

Here’s another lovely Opportunity 

Register for the Workshop here 

Saturday, June 22, 2019

Fundamental Equity Workshop in Mumbai
Stock Selection ~ Value Vs Price
Indian Equity ~ Sensex at 40,000 ~ Treasures & Traps

Limited Seats – Single Registration at Rs 12,000 ~ Group Registration of 3 or more at Rs 10,200 each

Save this Date & register for  another great opportunity to interact for a full Saturday ~ You can even request coverage of any particular company or companies when you register

Trapped in Scrips that have destroyed wealth  ? ~ Want to develop foresight in avoiding such Value Traps by identifying Red Flags before hand from Corporate Governance Issues & Financial Statements & other coverage in Annual Reports ?

How to position the Equity portfolio with Sensex at record 40000 ~ Do Valuations look stretched in the short term ?

How to protect Wealth while creating it in Direct Equity? ~ Need  Conviction to Invest in Direct Equity ?

We shall be addressing these & many more concerns  at this Mumbai Workshop  

Look forward to seeing you at the Workshop

Any Queries or need guidance call me on +91-9820162597 or on + 91-22-42304140 or email me at gaurav@jsalphaa.com

Cheers,

Gaurav

 

Gaurav A Parikh

Workshop Conceptualised & Conducted by

GAURAV A PARIKH

Treasures & Traps ~ Rewards & Risks ~ Clearly this is the moot mindset focus currently with Sensex & Nifty recording all time highs of 40000 & 12000 respectively driven by a handful of high index weightage core stocks on the second TsuNaMo election wave in five years.

Gaurav A ParikhCapital Protection  is a ‘must have’  Mindset  at all times for serious Wealth Creation through Equity.While Growing your Wealth it’s equally imperative to Protect it.

One way to do so is to develop fundamental conviction & foresight to consciously avoid ‘Value Traps’ like Suzlon & Subex & PC Jewellers & Manpasand Beverages & Vakrangee & not be seduced or influenced by those who peddle such on social & print media & stock channels.

In such record bullish momentum on the Sensitive Indices it is FOMO or the Fear of Missing Out that is the biggest seducer as many influencing voices call  these  or near these record levels as the new bottom on the Sensitive Indices.

This Workshop will equip you to deal with these questions :

  • How to assess the capacity & the willingness to assume Equity Risk?
  • How to Fundamentally Value & Select & Weight the Companies in a Portfolio ?
  • How do Company Valuations rack up against their Share Price now? ~ If there is Value, where can we find it as we negotiate these bullish markets which heightens the risk of more & more ‘Value Traps’ emerging
  • How should one read & interpret News & Views in the Print & Social Media & on Stock Portals & Channels ?
  • What are the red flags one should look for in an Annual Report ?
  • How much of such Interpretation & Valuation is already reflected in the Share Price ?
  • Where can we pin down Certainty in the Uncertainty in Equity Markets ?
  • How to strengthen resolve & conviction to hold on to Selections even when facing unrealized losses?
  • When & How to decide a Switch in Equity Holdings?
  • How not to let Emotion & Ego dictate holding on to Losers & Wealth Destroyers & just letting them go or avoiding them in the first place?

Invest a Saturday with Gaurav to discuss & debate all the above & more & to appreciate that Wealth of Mind & Monies must Move in Tandem & fundamentally assess Macros & Micros. read more

Sat Aug 4 2018~Mumbai Funda Equity Workshop~Spotting Gold Mines & Side Stepping Explosive Ones

Fundamental Equity Workshop in Mumbai
Stock Selection ~ Value Vs Price

Indian Equity ~ Goldmine to a Few & Explosive Mine to Many ~ Training Minds to be Minesweepers to differentiate

Saturday, August 4, 2018

Wealth of Mind & Monies must move in tandem.Click above or here to attend my next Mumbai workshop on  Saturday August 4,2018.It’s yet again at my Fort HO,above Starbucks & Croma & a hop step & jump from the BSE

Q’ attend karey? 

‘Q’uality’~how to focus on it~ Discipline of never Deviating~never? what about that potential multi-bagger turnaround or sapling that carries high risks ? Equity is all about Growing Wealth while Protecting it ~ taking & managing risk

The above Registration link also displays the Workshop Template outlining what shall be covered & why you should invest one Saturday with me

We’ve had real Fun at all the Equity Workshops in the last three years with some lovely entertaining interaction with & between participants from all over India & Overseas while playing the Corporate Tambola  or  even playing around with ‘Experts’ Views on our Sensex & Nifty or what Trump will do or not do next ! or whether any North Korea Missile is pointed at our Sensex ! or   explaining & evaluating practical applications of Investment & Financial Concepts through discussion & debate in Company Case Studies with focus on  assessing ‘Value vs Price’…we’ve seen the impact of FPI flows,Interest,Inflation & Exchange Rates,Fx Reserves,Oil Prices & Budget Deficits…we’ve discussed the importance of Corporate Earnings on Valuation & in many cases how it’s the Assets that give Value…we’ve examined the four legs of the Equity table ~ Valuation,Liquidity,Sentiment & Momentum & how to gauge rising risk when Markets run ahead of fundamentals…many of you have been rewarded too at the workshop for great lively answers & interaction

Here’s another Opportunity in August 2018 in Mumbai to Train & sharpen Minds to become more efficient MineSweepers to spot & differentiate between Wealth Creating Gold Mines & Wealth Destroying Explosive ones

We’ve tackled Valuations & Risks of Bombay Dyeing,I B Ventures,HEG ,Yuken,Ruby Mills & HOV among many others in the recent past & discussed the serious Corporate Governance Issues in the Essar Oil Delisting,Kwality,JBF & Vakrangee among others & the huge Risks associated with  wealth destroyed companies GTL Infra,ESL,Suzlon,Subex & Uttam Galva that yet keep offering hopes of a turnaround read more

Kwality destroyed 90 % from Rs 160 to Rs 21 in a year !~Blame the Brokers for going broke?

You were looking for 100% gains in a year…Poof ! now you see your Principal evaporating near 100% 

Kwality Limited’s Share Price has evaporated nearly 90 % from Rs 160 to Rs 21 in a year !

Blame the Brokers for going broke?  

Where was the Quality in the first place !...it was clearly basking in the sunshine of the surge in the share price of other Dairy Companies like Heritage & Parag Milk

I recollect how aghast I was when Kwality Ltd was recommended strongly by not one but several well known broking houses in 2016 & 2017 when it was being quoted in the Rs 110 to 140 range.Targets given by them were extremely tempting to succumb to ! ~ one gave Rs 263 ! ~ another projected Rs 200 !

I have often  mentioned this Company at my Fundamental Equity Value Vs Price Training Workshops when illustrating severe Corporate Governance Issues

A few months ago on March 27, 2018 Kwality had responded to the Exchanges on their concern of falling share price that there was no strategically significant development in the organisation or business & that they were committed to deliver sustainable value to its shareholders at all time…Wow!

The Problem perhaps was on news of Promoter Dhingra pledging shares…or the Company complaining to the exchanges that a broker was fradulently selling shares in the market .Earlier this month Kwality has also been put on the Additional Surveillance Measure (ASM) List.Their June 20,2018 Board Meeting to consider buyback and /or Bonus has been rescheduled to July 3,2018 as majority of the Directors could not make it

What’s going on here !

The Exchanges have just been notified of a downgrading of credit rating by Brickwork .It was just two months ago in April 2018 when Brickwork had given their last ratings  

Today Kwality  was  on lower circuit at Rs 21.15 with heavy volumes before opening up to hit upper circuit & closing a little lower at Rs 22.95 on BSE…relief rally or someone finds real value now !? …52 Week High was @ Rs 160 a year ago…that’s nearly 90% wealth destroyed  from a Market Cap of  @ Rs 3800 crs to just above Rs 500 crs !

This is not to condemn the Broking Houses or vilify them…after all the Money & Risk is all yours…no one held a Gun to your head to invest in Kwality !…so don’t blame the brokers for going broke in this ! even if they had any vested interest in recommending the Company for Investment

Just to warn you not to be carried away by momentum & sentiment in bull markets & follow anyone blindly read more

1 Very Fundamental & often Contrarion Guy !…About GAP…That’s Me!

Gaurav A Parikh
Gaurav A Parikh

🙂 This is me in brief & first person 

Live ~ Don’t just Exist ! ~ B+,that’s also my Blood Group ~ Began with Auditing,Accounting and Consulting with one of the Big 4 in India & Overseas before moving full time to Capital Markets ~Passionate about Equities ~ Fundamental  Equity Research & Training  in Capital Markets ~ Wealth of Mind & Wealth of Monies should Move in Tandem ~ Want to sense what’s happening on BSE & NSE and off it ! ? then connect with me or my blog www.gauravblog.com with the tagline ” In India,Companies may fall sick but Promoters rarely do !” ~Buoyant ~ Enjoy Life’s Journey making Friends and Travelling ~Been There ~Done That~and even Burnt the Toast ! ~ Connect with ‘Rock On’ and ‘Zindagi Ne Milegi Dobara’ ~ Lived and Living it! ~Endeavouring to add ethical and honest value to Family and Friends and Business Clients and Associates ~ Mentoring Today’s Youth without being Judgmental while embracing the inevitable social changes

Intensely Passionate about All matters ….Equity and my blog www.gauravblog.com...My Kids,they’ve grown up now..they’re my vital Vitamins !….Food …Swear that Cauliflower is ‘God’!…Films…Neil Diamond…Kishore Kumar…Maria Sharapova…Madhuri Dikshit….reading on philosophy…yes,I really do!….’Economist’…. Cricket…and yes also my wife !..she’s prompted me to say this!

 🙂 This is also me..well not in first person and not so brief 

Professional Profile of GAURAV A PARIKH

Here are few recent accolades for GAURAV A PARIKH

  1. May 2015 ~ Rated  One of  The Top 10 Experts on Economics & Investing in India by an Independent US Observer
  2. January 2015 ~ Featured by OUTLOOK BUSINESS as one of India’s Top Ten Stock Pickers in its special edition
  3. August 2015 onwards ~ NSE Fundamental Training Mentor Workshops
  4. December 2015 ~ Featured by OUTLOOK BUSINESS  yet  again as an ace Stock Picker as Shemaroo given as stock for 2015 in the previous year edition as above zoomed over 100% despite Sensitive Indices cracking over 5% in 2015  
  5. January 2017 ~ Third year in a row invited by Outlook Business for Stock Select for 2017 Special Edition as simply killed it in 2015 & 2016 with Shemaroo & Astec respectively and topped the ranking in both years among those invited …luck more than skills perhaps 🙂
  6. December 2017 ~ Featured in Outlook Business Special Annual Edition fourth year running 
  7. April 2019 ~Honoured to be featured for a record fifth year in a row in the Special Annual Edition of Outlook Business showcasing  some of India’s best stock pickers

 

GAURAV A PARIKH is the Co-Founder & Managing Director of Leading  SEBI Registered Mumbai based Fundamental Equity Research,Investment Advisory & Training Entity Jeena Scriptech Alpha Advisors Pvt Ltd .He is a Fundamental Force to reckon with in the Field of Direct Equity in Capital Markets.Based in Mumbai he can be contacted on 9820162597 or gaurav@jsalphaa.com or a visit to www.jsalphaa.com should you wish to explore an opportunity to seek quality equity portfolio advice & training in Capital Markets or invite him to address an audience or expound his views on discussion panels on matters related to Equity & Corporate Governance….to protect and grow wealth on portfolios…for corporate and financial  advisory on IPO Process & Pricing ,Restructuring,Valuations,Mergers and Acquisitions and Funds Mobilisation through Equity and Debt read more