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Monday, January 17, 2011

Company: Jayant Agro Organics: Dec 2010 Shareholding Review

Quarter Ending Dec 31,2010  Jayant agro shareholding report has been released.
Jayant Agro Organics Sept 30,2010 Stock price: 140.35
Jayant Agro Organics Dec 31,2010 Stock price: 110.55

Jayant Agro Organics stock price has fallen 21.23%  in the Quarter Oct 1,2010 to Dec 31,2010
Comparison of shareholding report for Dec 31,2010 and Sept 30,2010 gives us some insight.

There has been selling by HNI (High Networth Investors) and Corporates big time..
Sept 2010 HNI Corporate shareholding: 3,374,791 shares
Dec 31,2010 HNI, Corporate shareholding: 2,461,954
ie a decrease of 912,837 shares worth atleast  91.28 Million Rupees.

So 100.91 Million (10.09Cr) worth of shares have been dumped in Sept 30,2010 prices (140.35) the stock was worth 128.11 million (12.8cr) making a cool 2.8Cr on paper.. (but will they get back 912,837 shares if they want to buy back from the market.. (I don't think so.. )

Conclusion: Selling has happened in Jayant agro no doubt about it .. the question is.. Is it panic button or just part of the cycle.. (credit lines tightening, short term swings, shake the tree) 
No doubt Jayant Agro due to its commanding position in castor oil derivatives and the fact that its the largest player in castor oil /seed processing it should have a much higher valuation... My take is this is credit cycle.. short term trading.. 
As per March 2010 Jayant has made provisions for taxes at 163 million (16.3 Cr consolidated ) and in the past 2 quarters it has paid out 5.16Cr(consolidated)  only so the next 2 quarters we should expect payment of taxes of 11.14Cr ie atleast 5.57Cr per quarter which is higher than the 5.16 Cr paid in first half??.. (These are consolidated tax levels mentioned so we need to look at consolidated results)  So keep your fingers crossed.. and buy before results!! its just 4 days to go..

PN: These are my personal views about publicly available information.. Please do your own deep dive before investing cause its your money..not mine!!
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