Stock manipulation: Best Steel Logistics

Best Steel Logistics Limited (BSLL) claims to provide warehousing solutions for steel industry and is also engaged in trading of steel and related products. It controls four warehouses with a total area of 373,000 square feet, located in Bengaluru, Hyderabad, Faridabad and Ghaziabad. While the company says it is also looking to set up additional facilities in Rajasthan, Gujarat and Uttar Pradesh, revenue has been erratic in the past five years, from no revenue in FY12-13 to Rs61 crore for FY16-17; trailing 12-month (TTM) revenue is at Rs210 crore.

BSLL reported net sales of Rs99.6 crore in September 2017 compared to Rs1.34 crore in September 2016. While the reported profit after tax was Rs2.91 crore for September 2017 compared to Rs0.34 crore in September 2016. Until FY15-16, the net worth of company was also negative with a negative reserve & surplus of Rs0.54 crore. BSLL is growing by borrowing funds; as of FY16-17 borrowing stands at Rs33 crore. The cash flow from operations is negative; this is due to high receivables and low payables, i.e., sales are not being converted to cash. This trend can be seen in its cash flow statement for the past three years. For FY16-17, the increase in debtors was Rs9 crore while decrease in payables was Rs1.8 crore in the cash flow statement. The promoter shareholding has reduced from 39.04% in June 2017 quarter to 38.75% in the September 2017 quarter. Meanwhile, the stock has rocketed—from around Rs9 in November 2015 to over Rs102 now, a rise of 1033%. The regulators? As usual. 

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    COMMENTS

    Nivesh Jain

    1 year ago

    HI SEE NOW APL APOLLO TUBES IS ACQUIRING APOLLO TRICOATS AKA BEST STEEL LOGISTICS ..

    hope now you change your stand on apollo tricoat

    MDT

    1 year ago

    1. APL Apollo has denied having to do anything with this company. It has clearly stated it is the chairman’s son who has teamed up with others in his personal capacity to make an open offer.
    2. Where is the tunaround? Its turnover has shrunk 90% and it made an operating loss in June quarter.
    3. In any case what does any of this got to do with an article we wrote in November 2017 when the stock had shot up without any fundamentals from 2015? What was happening in the company between 2015-17? Nothing. Only manipulation.

    Harshit Solanki

    1 year ago

    Why is moneylife not replying to below comments... or they should agree in open that there thesis is completely false

    sakthi vel

    2 years ago

    Now APL Apollo group has invested here. what is your opinion now? please update.

    Nivesh Jain

    2 years ago

    moneylife should do their research properly , analysis should not be done simply relying on past data future prospects should be done accurately

    Have you visited the company ?
    Atleast you had a concall with management regarding future prospects?

    time will say whether best steel logistics is manipulative story or multibagger story

    shyamdave.d

    2 years ago

    Shocking. What are regulators for? However, investors, stock players and commentators should also report to you SEBI etc.

    PARESH KAMAT

    2 years ago

    It is turnaround story

    asm aircon

    2 years ago

    the company came out with open offer in 2016 the management has changed

    Stock manipulation: Toyam Industries
    Toyam Industries was originally incorporated as Chetram Balkrishan Limited and later changed its name to Ojas Asset Reconstruction Company Limited before it was rechristened  Toyam Industries in December 2016. The penultimate renaming was designed to reflect its changed business—from securitisation and asset reconstruction to general business and trading activities. Further, in April 2017, the company decided to expand and diversify its business to “all kinds of activities related to sports, fitness, fashion, films, entertainment or any other genre.” The surprising part is that, though the company claims it is has multiple services—sports, gaming, merchandise, fitness, healthy foods and beverages, investments and consultancy—its website provides no substantial information about the businesses, clients or any other important data.
     
     
    The company claims it is launching an integrated fight league platform in India, registered as "K1L Kumite 1 League". The company had announced that it is launching its K1L series of products and services by opening a sports cafe in July 2017 in Mumbai. On its website, the company claims it has trained over 35,000 women students in self-defence at its KIL training facility. However, it is perplexing that no details have been provided on the website of the kind of training, nor proof of the training having taken place, nor annual reports. The company gives vague explanations in its ‘services provided’ section on the website. Here are a few screenshots which are quite bizarre. 
     
     
    Apparently, Toyam’s promoters don’t have much faith in the company. They have an extremely low shareholding of 4.71%. The company has a market-capitalisation of Rs127 crore. The sales of the company grew 1366% year-on-year (y-o-y), from Rs0.44 crore in the June 2016 quarter Rs6.45 crore in the June 2017 quarter while the net profit fell 94% y-o-y from Rs0.32 crore in the June 2016 quarter to Rs0.02 crore in the June 2017 quarter. The most amazing aspect is its stock price which rose 626%—from Rs1.31 on 14 February 2017 to Rs9.51 on 27 October 2017. 
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    Stock manipulation: NBI Industrial Finance
    New Bank of India Limited was into banking. Its business was taken over by the government in 1980 and, after nationalisation, the company changed its name to NBI Industrial Finance Co Limited and began to operate as a non-banking financial company (NBFC). It provides hardly any information to its shareholders. Its website does not have the directors’ reports for 2016 and 2017. Results for the December 2016 and March 2017 quarter are also not displayed on the website. The performance of the company is erratic and the management provides no explanation for it. Revenues, just Rs0.18 crore in the December 2016 quarter, rocketed to Rs97.44 crore in the March 2017 quarter and crashed to Rs1.02 crore in the June 2017 quarter. 
     
    NBI made a loss of Rs0.01 crore in the December 2016 quarter. It then made a profit of Rs78.26 crore in the March 2017 and a profit of Rs0.83 crore in the June 2017 quarters. NBI announced a share split of one equity share of Rs10 each into two equity shares of Rs5 each, recently. It has had the same auditor for the past 10 years and, due to the mandatory rotation of statutory auditors on completion of two consecutive five-year terms it changed its auditor from Lakhotia & Co to DK Chhajer & Co from the current financial year. The company has a market-capitalisation of Rs400 crore and trades at a price of Rs3,204 per share. The stock skyrocketed from Rs270 per share on 7 December 2016 to Rs3,250 per share on 13 October 2017 an increase of 1104% in one year. The regulators don’t seem to be bothered about such a clear case of rampant price manipulation. 
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    COMMENTS

    Lalit Agrawal

    2 years ago

    Management is still living in 19th century, by deceptive means to increase its own earnings. Thus negating easy cheap capital formation through equity. Read The Hindu 17th September 2017, to understand the art of manipulation. Company business has sky as the limit of earning and profitability. Manipulating small investors capital is like shilling wize but pound fool. Present tenet is let all earn. Please learn from Mukesh bhaji Ambani to earn

    Himanshu Kishnadwala

    2 years ago

    a thorough investigation should be ordered to rule out any manipulations

    Lalit Agrawal

    2 years ago

    NBI management is big cheat. Please read The Hindu dated 17th September, it provides in details the manipulation in sale of shares. Robbing equity holders does not pay. Rather restricts capital formation in future. The mature finance mantra is let all earn. Thus increase values for all. Cheats are most of part busy in manipulation defensively. Instead of concentrating aggressively the market, where sky is the limit to grow for all.

    DrSatish Kumar

    2 years ago

    unbelievable ...

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