Saturday, August 28, 2010


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


  1. Sir,

    Thanks for the update.

    I have bought some about a year ago. Now the ratio is fixed at 2 gangadharam to 1 Gandhimati. That will add 5.75 Cr to capital base. Will also bring in accumulated book losses. Gangadharam has about 3 acres of land.
    (as per notice recd. recently)


  2. dear atul,
    is it a value buy at currnt rate ?

  3. Impressive analysis valuepick sir, i really this type of research instead of asking whether its good buy/when to sell, when how etc. Fundamental research protect investors money :).

    Really liked sir.

    Thank you for brining it to here :)

  4. dear value pick
    i think promoters are off loading ur recent reco.-vimal oils.nonpromoter holding is up from 78% to 80%.

  5. Hi Sir,
    Can you please post result update of Govind rubber. The company has declared excellent june quarter results. Also, please comment whether to buy it or not at current levels. What is the target?

  6. Promoters of Vimal is going to take 70 laks shares in preferential basis ,after that their share holding will rise close to 70%


  7. Valuepickji already mentioned in his post that most of the holding shown in large public category is of the associates of promoters itself.Please comment only after reading the full post and avoid misleading others.


  8. This comment has been removed by the author.

  9. value
    this is a stock ive had for some time its called nicco parks and resorts its moved up and im in profits ........ do u think it still has value left ?
    wld be gratefull if u did a write up on it
    thanks in advance

  10. Sir,
    Will it be prudent to buy TCI FINANCE for 2 years' holding at CMP?

  11. dear sir

    appreciate if you could advice on your recommended stocks veljan and aries agro

  12. Stock has done extremely well .. any update on the company

  13. Hold Gandhimathi, expecting good days ahead



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