Aftek begins moving from sub Rs 10 to now Rs 11.50…Expect Fireworks

Simply cannot figure out why Aftek is ‘kept’ this low at Rs 6 to Rs 10 range for a long time…Key word here  is ‘kept’.Today it broke to Rs 11.50 with fairly strong volumes of over Three lakh and Six Lakh Shares on BSE and NSE respectively.

With over Rs 30 cash/share , as over Rs 300 crs in cash,most of it lying in a Portugese bank as a Dollar Deposit or in a Current A/c and with little debt and a high Book Value of Rs 90, what is holding Aftek back at Rs 10 levels ?

One would suspect that the Company has no control over the Cash ,although the auditors,had accepted the management’s assurance that there was no remittance restriction on these funds….The Funds do exist,unlike the Satyam Saga….At the last AGM,the MD,Ranjit Dhuru was asked by an irate shareholder about this situation…He was unable to give any convincing answer…..so there is clearly a Corporate Governance and lack of Tranperancy issue here

I wonder how RBI allows Aftek to keep such large Monies for years in Portugal,when the Company has no operations there !

Aftek earns no significant Income on these Funds,but has shown a Rs 89 crores FX gain this year as US Dollar has appreciated 25% on the Rupee in 2008/9…It has used this to provide for Rs 130 crs for it’s Investment and loan to it’s German Venture which has been wound up

It’s a controlled scrip,although the shareholding pattern does not reveal it and Promoters  hold under 20 % and have not increased their shareholding….giving credence to the suspiscion that they do not control the Company’s Funds lying in Portugal…Who does then ? 

Expect fireworks in Aftek…It’s 52 Week High/ Low is Rs 56/Rs 6…so we are yet at the Lower End…..Surely expect fireworks 

7 thoughts on “Aftek begins moving from sub Rs 10 to now Rs 11.50…Expect Fireworks

  1. HELLO SIR,

    YES AS YOU SAID I ALSO TRIED & I GET 20% RETURN IN JUST 2 DAYS THE STOCK IS GOOD & YES IT UNDER VALUED.

    SIR AS TODAY I RECIEVE NEWS AS LIC GOING TO PUMP RS 50000 CR IN FISCAL YEAR FY10 IN EQUITY & MORGAN STANLEY QUOTE TODAY HE GONA A PUMP 20 BIILION $ TO EMERGING MARKET AS WELL IN ASIA. FROM 2 YEARS DOWN LINE EVREYONE EXPECT OUR ECONOMY OUTPERFORM . ( SIR YOUR COMMENT ON THIS STORY )

  2. HELLO SIR,
    AFTER NIIT , I GUESS 1 MORE SIR, AS BIG AS SUZLON AS BOTH HAVE SIMLAR OPERATIONS.
    SIR I HAVE PURCHASED 2000 NEPC INDIA SHARES 2 YEAR BACK. TODAY I GET TO KNOW THAT NEPC SELL HIS COMPANY, SISTER CONCERM TO ANIL AMBANI WAY 2 YEAR BACK , THAT COMPANY NAME SOUTHERN WIND FARMS LATER THAT COMPANY NAME CHANGES TO Global Wind Power Limited , THEY AIMING FOR IPO WHICH PRICED ABOUT 150 – 180 . WHERE NEPC REMAINS SEPRATE COMPANY WITH NO DEBT AS THEY PAY OFF & GET LICENSE IN AVIATION SECTOR AS WELL THEY COME OUT WITH SEZ IN TAMIL NADU IN 6 MONTH IN POWER SECTOR.
    WHAT EXCITING IS THAT EVERY 100 SHARE HOLD IN NEPC WILL GET 12.5 SHARES OF Global Wind Power Limited.

    SIR NEPC PRICE IS RS 7 , SO IN SIMPLE CALCUTAION IF IPO COMES IN MY CASE I WILL RECIEVE 250 SHARES OF NEW COMPANY ALONWITH OLD HOLDING IN NEPC . FOR RS 15000 I GET APPROX 40000 VALUE OF SHARES .

  3. Sir
    I have a good holding in Aftek for the last 4 years. Searching for news about AFtek, I found your blog.
    Any major reasons for the price being kept low. Last one month much news is flowing about aftek, but price is not going up. What is your target if any for Aftek in ST,MT,LT
    Thanks and regards

  4. Hi Vijay,

    You cannot have targets on controlled scrips…it’s value is derived from the Monies lying in a bank in Portugal…over Rs 300 Crs => US $ 68 Million or so…there is little transperancy on this as to who controls this Money..so while it is reflected in Assets and therefore Book Value,why it is kept at negligible interest rate in Portugal,where company has no business is the BIG Question…Auditors had accepted Promoter management’s assurance that there was no remittance restriction on these monies…Let’s see what they do this year…Clearly if these monies are released and used productively for company operations,the share price of Aftek will move significantly northwards…As you are a shareholder for 4 years now,please do attend the AGM this year and put forth forcefully this question of these monies !

    Cheers !

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