GANDHIMATHI APPLIANCES - OPPORTUNITIES UNLIMITED , BUT ......

There is number of examples in Indian

stock market for promoters inability/laziness

or their negative attitude towards other share

holders wasting chances of immense wealth

creation. Gandhimathi Appliances is such a story.

Gandhimathi is making household appliances

like LPG Stove, Pressure cooker, Mixer

Grinder ..etc in the brand name 'BUTTERFLY'.

This is the No.1 brand in case of LPG Stove in

South India and also have a good

market share in other products. But the

financial side of this company is not a

robust one. We can’t blame anyone who

suspect that the promoters are siphoning 

of  funds generated in this company and

divert the same to companies privately

owned by the same/related parties. Presence

of other companies of promoters in the same

line of business is a real misfortune  to the

minority share holders of Gandhimathi

Appliances.Any way , earlier this company

went for BIFR and later as per a scheme the

promoters bring more funds to the company

to revive it. Now ,company is going

to merge another group company

Gangadharam Appliances with itself

and  final decision regarding merger

ratio ..etc are expecting soon. It is expected

that after the merger is completed company

will sell its surplus land and pay back dues

to strengthen its balance sheet. Some of the

recent indications from the management

giving some hopes about the change in the

attitude of management. I suspect ,

the huge wealth created by peers like TTK

Prestige and Hawkins

Cookers in recent past may also be a  reason

for  a second thought for the management of

Gandhimathi. If the management is really

willing to change its attitude and ready to

consolidate its operations in the listed company

and show good corporate governance 

the scope is very vast and this may be a

multi bagger even from current level. Since

its future is depends on many ‘IF’s  only high

risk takers can consider this .Now it is

trading around Rs.73/-

* Earlier discussed in MMB around Rs.55/-

* with inputs from friends