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Stocks

Kesoram Sells Tyre Subsidiary to JK Tyre 1month and 5 Days After Vehemently Denying It Would Sell Tyre Subsidiary To JK Tyre

Kesoram Industries’ press release, August 7:

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“Nonetheless Reiterate”, “No Intentions” – means: Oh come on, there is no way we are selling.

And then, on September 12:

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The Chart says People liked it in the morning today, but didn’t like it:

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But They’re Not Releasing Results Info Since December 2014:

Let’s see:

  • They’re into tyres (Birla Tyres), Cement and Rayon
  • Have made losses in the last four years (but this sale will give them enough to wipe out those losses)
  • Have apparently 4000 cr. of debt, and this could be used to cut that down
  • Have not released quarterly results since December 2014 (isn’t this hugely illegal?)
  • Have deferred their Annual General Meeting too, recently.

And from the sudden change in the “vehement denial”, I wouldn’t trust the management either.