The company is a great company with solid fundamentals.
Om Prakash Garg is the founder of Cupid Limited.
In September 2023, Aditya Kumar Halwasiya acquired a controlling stake from the outgoing promoter.
But the promoter(Aditya Kumar Halwasiya) brother's(Ajay Halwasiya) partner (Hari Shankar Tibrewal ) involved in Mahadev betting app scam.
Analysts have noted that companies managed by the Halwasiyas, such as Cupid Ltd and Tourism Finance Corporation of India, experienced sharp stock price movements that coincided with the revelation of Tibrewal’s involvement in the betting scam.
Thankyou for adding this point. In Jan, both CUPID and TFC hit lower circuits. As you pointed out, Mr. Aditya Halwasiya has stake in both. CUPID is also now under stage 1 ASM surveillance.
I would say promoter quality is not even on toss, it is a massive red flag. Even if Aditya himself is completely clean, we cannot underwrite the risk that ED will eventually not probe him for related party transactions etc.
Sometimes big investors target undervalued, under-managed companies with strong underlying businesses but weak governance/promoter structures. Sometimes this works brilliantly (operational turnaround). Sometimes it doesn't ( like governance issues, related party concerns in this case). I am not sure which one is happening right now.
RBI has much more stringent rules than SEBI. If ED probes Mr. Aditya as well in the future, then RBI will certainly take note of it and may even force divestment in Karnataka Bank if proven guilty.
The company is a great company with solid fundamentals.
Om Prakash Garg is the founder of Cupid Limited.
In September 2023, Aditya Kumar Halwasiya acquired a controlling stake from the outgoing promoter.
But the promoter(Aditya Kumar Halwasiya) brother's(Ajay Halwasiya) partner (Hari Shankar Tibrewal ) involved in Mahadev betting app scam.
Analysts have noted that companies managed by the Halwasiyas, such as Cupid Ltd and Tourism Finance Corporation of India, experienced sharp stock price movements that coincided with the revelation of Tibrewal’s involvement in the betting scam.
According to me, Promoter quality is on toss.
Thankyou for adding this point. In Jan, both CUPID and TFC hit lower circuits. As you pointed out, Mr. Aditya Halwasiya has stake in both. CUPID is also now under stage 1 ASM surveillance.
I would say promoter quality is not even on toss, it is a massive red flag. Even if Aditya himself is completely clean, we cannot underwrite the risk that ED will eventually not probe him for related party transactions etc.
Better to stay away for now.
Thank you for Acknowledging.
Mr. Aditya Halwasiya is now accumulating shares in Karnataka Bank.
Karnataka Bank does not have a promoter group.
But hope RBI won't allow this team to manipulate the bank.
Sometimes big investors target undervalued, under-managed companies with strong underlying businesses but weak governance/promoter structures. Sometimes this works brilliantly (operational turnaround). Sometimes it doesn't ( like governance issues, related party concerns in this case). I am not sure which one is happening right now.
RBI has much more stringent rules than SEBI. If ED probes Mr. Aditya as well in the future, then RBI will certainly take note of it and may even force divestment in Karnataka Bank if proven guilty.
PE of 140 is crazy.