Saturday, July 17, 2010


This company is projected as a mutibagger by
many sources and many readers are asking my
opinion on this . Considering various factors ,
even if the industry in which company is operating
is promising  ,Sturdy is not giving any confidence to
me because of the following reasons.

1)      Even if company showing improvement in sales ,
no growth in profits in proportion of sales growth.
Out of the 145 Cr sales posted in last qtr 100 Cr are
from trading activities  and only balance 45 are
from core activities  and even this dramatic
improvement in  trading figures are unbelievable.

2)      When we invest in a small company and ready
to hold it for a long time on expectation of mutibagger
return ,we should give priority to the integrity of the
promoters of such a company, which lacks in the case of
Sturdy Industries.We can take few indications for this.
First one is ,Company’s proposal to merge two promoter
owned companies M/S Nuline India Private Ltd and
M/S Swati Storwel Private Ltd was rejected  by the
Himachal High court with a fine of Rs.50000 and court
also commented that  at every stage of the proceedings
the petitioners have tried to withhold information from the
court or to mislead the court.You can access the  said
court order HERE. I think this not the quality of a good
promoter. Secondly, In a filing to BSE dated 15.07.2010
company informed BSE that FII's has withdrawn their
consent to invest in the Company . I  think this also is
not a good sign at all and it may happen either the said
FII studied the company well after committing an
investment and decided to avoid it because of the
quality of company ,or this FII commitment never
happened earlier and company published such a news
only to lure retail investors to rig the price ..

Thirdly,Company  recently came out with an
unwarranted stocks splits when its price was
around just Rs.25. In case of stocks splits of
companies quoting  at lower level ,90 out of
100 cases are only to create artificial volume to
attract retail investors and make an easy way to
exit the promoter and related parties .Before such
an exit , promoters itself may take additional shares
in order to make additional profit even if there is no
proposal for any new investment by the company.

3)      Big investors are always in a better position to
know the happenings in any company than small retail
investor. So their action is also a point to note.
In June 2009 ,large investors holding in this company
were almost 30 % and now it is just 8 % . Some of them
are even completely exited. (You can access the sample
selling details HERE).This also is not a good sign for any
company.I strongly believes that the recent BUY tips 
on this counter from various sources were only to
attract retail investors  in order to create liquidity for an
easy exit of some big players.

In nut shell , This company is not an attractive
one for me by any means to give  multibagger
returns. In a bull market  any company may move
ahead due to many reasons other than
fundamentals , but while buying such stocks ,don’t
forget bull market will not continue forever .
So take a decision by yourself


  1. Dear Valuepick sir,

    Wonder full caution post for retail investor, we can learn many lessons from this porst.

    One more company i keep on getting tips to my mob is : FARMAX, every week i get about 10 times to buy this splitted stock while promoters are exiting this stock siliently. :)

    Thank you.

  2. Hey Value pick
    Great analysis as usual though uve ignored the biggest redlight ....... the auditors have resigned midway with no explanation
    also i wld be greatful if ucld analyse indobonito multinational

  3. Yes , you are right ,thanks for the additional point.In the case of Indo Bonito,it is very difficult to get detail information ,so not in a position to comment,sorry..

  4. value,

    you are one of the rare person recommend a sell on sturdy industries with solid reasoning.

  5. hats off valuepick for your detailed report.
    keep it up sir.

    any suggestion regarding INDAGE VINTNERS sir? at present it is trading at very low market price i think..thanks in advance sir.

  6. Dear Senthil
    As everybody aware ,company was in deep trouble for last few years. Recently company signed an agreement with lenders for one time settlement and promoters decided to infuse fresh funds. Even if these are positive steps ,it will take reasonable time to reverse the company.If you are ready to hold at least three years and having appetite for risk-hold it.

  7. thank you value pick sir

  8. One of the finest analysis. Thanks a lot for your wonderful analysis and you help in saving money from small investor like me.

  9. dear value pick ur views on northgate tech and alok ind

  10. Few More Points to add so that investors avoid buying STURDY INDUSTRIES

    1. That the Management of the Company was manipulating the share prices in connivance with market players. On perusal of the statement you would kindly see that on 20th September, 2007 the shares of the Company opened at Rupees 7.29 and on 20th Nov, 2007 it was at Rs 48.10. Since 1995, the shares of the Company were never trading at such rate. This was a clear case of speculation, manipulation and insider trading of share prices which was not only detrimental to the interest of investors but illegal and violative of the Laws and regulations governing the Trading of shares.

    The company had borrowed large funds from the Bank and just making book entries, it is befooling the Bank and Public at Large. The turn over being shown in the financial reports is totally false and inflated just to cheat the Bank and the public at large.

    2. There is a serious management dispute in M/s Sturdy Industries Ltd for the last 3 years and the matter is pending before The Company Law Board, Principal Bench, New Delhi under section 397, 398, 402 and 408 (oppression and mismanagement) filed on 22nd Oct 2007. Company Petition No from 166 of 2007.

    3. Statutory auditors of the company had resigned in the month of March 2010 with no explanation. If the company is promising then why did the auditors had resigned now who was with the company since the inception of the company.

    4. Also the power supply of M/s Sturdy Industries Ltd (HP) was disconnected by Punjab Pollution Control Board after found to be violating various norms of Pollution. The article in the newspaper "Indian Express" dated 2nd August 2008 proves everything.

    5. Also the production of M/s Super Plateck Pvt Ltd (HP) one of the sister concern of M/s Sturdy Industries Ltd which was sealed by Bureau of Indian Standard for misusing ISI trademark under BIS act 1986. The article in the newspaper "Punjab Kesari" dated 20th August 2008 proves everything.

    6. Also the Agency of Polymer offers invited by IOC Petro Chemicals Ltd., Panipat- offer made by M/s Sturdy Industries Ltd was also rejected.

  11. Latest News:

    In a filing to BSE dated 15.07.2010 company informed BSE that FII's has withdrawn their consent to invest in the Company.

    On dated 20.07.2010 company informed BSE that fresh 80, 00,000 fully convertible warrants will be issued to 20,00,000 Promoter Group company and 60,00,000 Non Promoter Companies.

    Now see how Sturdy Industries Ltd is befooling the investors at large:

    60,00,000 fully convertible warrants which will be issued to four different companies as shown by Sturdy Industries Ltd actually belongs to the brother of law of one of the director of Sturdy Industries Ltd.

    Huh Shocking

    God shave the investors and I think SEBI should ban these type of fraud companies.

  12. The article wa sposted when Sturdy was trading @ 5 levels, but it touched 5.7-5.8 afterwards and its still tradinh at highers levels when was reccomended to sell. where is the selling??? After big consolidation the stock now looks good for short term purposes and has momentum. Its likely to touch 7.5 levels in next 2-3 months.

  13. what you are telling is absolutely correct , break out shortly for a target of 10rs atleast , jun quarter numbers are decent , sales keep on improving , sure multibagger

  14. 5.51

    sell 2,14,655

  15. why you are telling all sorts of things , do post some useful facts ,its not a forum to see your buy and sell rate

  16. As I have indicated my short term taregt of 7.5 will soon be achieved. Few days back I have written:

    The article wa sposted when Sturdy was trading @ 5 levels, but it touched 5.7-5.8 afterwards and its still tradinh at highers levels when was reccomended to sell. where is the selling??? After big consolidation the stock now looks good for short term purposes and has momentum. Its likely to touch 7.5 levels in next 2-3 months.

  17. Just try to write on value pick available as per your blog suggest to give. Why are you giving sell call when you have never reccomended to buy sturdy.

    You seem to be tracking others reccomendations closely. Don;t try to post stocks reccoemnded by others. Many of your earlier postings are reccomended by others analyst just couple of days before your psoting

  18. Yes Valupicks, after your post I have too sold some of my positios in sturdy. Earlier I had huge positions in the same.

  19. technical target is 15 , after consolidation for 6months


    SARABJIT SINGH (Company secretary cum CFO) had resigned from the company on dated 26.05.2010. Firstly the auditors had resigned in the month of march now the company secretary ....something fishy going on in the company.

    Investors please BEWARE

  21. hey who r u man always giving some negative news , are u a ghost against this company , its not a big news it will happen in every company some will go , new will come its not a big issue its goin to rock in coming days

  22. Updates on Outcome of Board Meeting | 01/09/10 13:45

    With reference to the earlier announcement dated August 23, 2010, regarding outcome of the Board Meeting held on August 20, 2010. Further, Sturdy Industries Ltd has informed now BSE that that due to some reason beyond the control of the Company, the resolution passed in the meeting through postal ballot i.e. preferential allotment of warrants to promoter and non promoter category has been dropped for the time being.

  23. so what ur coming to say man , hold or sell ?


    its a bogus company

  25. today i sold my holding bcoz this anonymous , switching over to better one

  26. You have escaped , now it is trading below Rs.3/-



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