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company informed BSE that FII's has withdrawn their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 
