There is a lot of buzz going around a company by name Bartronics Limted. Talks are around that it will be a great company in future etc. etc.
I will not here argue the future earning potential, all I want to analyze and present some facts on share holding pattern which I obtained from company website.
The table below displays the Shareholding of the company. It should be remembered that 2 years back the Promoter holding was 58% and it has come down to 33% now and the trend shows that it is decreasing further.
In last 9 months the Promoter's share dropped from 39% to 33%.FII reduced their share from 11% to 6.6%and NRIs reduced it from 12% to 2%.
| Share holding of Bartronics Limited | ||||||
| Share holding pattern as on: | 31/12/2008 | 30/09/2008 | 31/03/2008 | |||
| No. of Shares | %age Holding | No. of Shares | %age Holding | No. of Shares | %age Holding | |
Promoter's Holdings | ||||||
| Indian Promoters | 9618218 | 33.19 | 9625659 | 33.22 | 10333845 | 38.94 |
| Sub Total | 9618218 | 33.19 | 9625659 | 33.22 | 10333845 | 38.94 |
Non- Promoter's Holdings | ||||||
| Banks Fin. Inst. and Insurance | 630472 | 2.18 | 820472 | 2.83 | 2029314 | 7.65 |
| FIIs | 1918570 | 6.62 | 2455938 | 8.48 | 2911520 | 10.97 |
| Sub Total | 4356205 | 15.03 | 5193342 | 17.92 | 4940834 | 18.62 |
| Private Corporate Bodies | 3805403 | 13.13 | 3974525 | 13.72 | 1993327 | 7.51 |
| NRI's/OCB's/Foreign Others | 539212 | 1.86 | 487934 | 1.68 | 3236682 | 12.20 |
| Others | 144575 | 0.50 | 270075 | 0.93 | 119466 | 0.55 |
| Sub Total | 4489190 | 15.49 | 4732534 | 16.33 | 5349475 | 20.16 |
| General Public | 10513843 | 36.28 | 9425921 | 32.53 | 5910970 | 22.28 |
| Grand Total | 28977456 | 100.00 | 28977456 | 100.00 | 26535124 | 100.00 |
Why the promoters and the smart money reducing their stake in the company if its future is so good. Promoters are the first people to know about the state of the company. FIIs and wealthy NRIs too have a great access to the company information because of the research team they employ.
Why the Big guns are reducing the stake? Big Question.
Now another interesting fact. I saw a report that asked Retail Investor or the general public to buy Bartronics. If you see the retail investor holding in last 9 months it has gone up from 22% to 36%, an increase of 63%.
The small investor is buying something which Smart people are selling!! Is Retail Investor more smart that FIIs, Does small investor has more information about the company than promoters, Does small investor has more risk appetite than a wealthy NRI?This is simple case of offloading to the small investor by fooling them and adds to another everyday frauds that happen in India.
If the promoters are so sure of super growth of this company, why are they doing such a generosity on small investor by distributing its stock.Below is the table for your analysis.
Disclaimer* This article is not intended to malign the company and has been written in good faith to evoke thoughts from the small investors. Readers can read the details of pattern on company website at http://www.bartronicsindia.com/investors/fresults.html and arrive at a conclusion.
excellent analysis
ReplyDeleteexcellent analysis and thanks for sharing the information
ReplyDeleteGreat Analysis.. Genearally, small investors are always the targets for frauds.. may or may not be the case here.
ReplyDelete-tjohn
Just to put things in perspective, falling promoter and FII holding is not unique to this company. In the wake of the global financial crisis, FII's sold off their holdings across all emerging markets. Just see how the FII holding has changed in all sensex companies over the last year.
ReplyDeletePromoter holding too has fallen in other companies, often on account of banks selling off pledged shares when the market prices crashed.
The company could still turn out to be a dud, what I am saying is that the information you have given alone is not convincing enough to press this case.
Regards
Ketan
I disagree with objectnut ober here.
ReplyDeleteIf the markets are down investors may leave but normally promoters don't.
Promoters want to build the business and normally reduce their stake only when markets are rising and not when they are falling.
Blogger has a case here.
NEARLY 75% PUBLIC COS IN AP SUSPECTED OF FRAUD, SAYS ROC
ReplyDeleteSai Deepika Amirapu, Hyderabad, August 14, 2009
The Economic Times (Delhi edition)
Barely a year after the billion-dollar scandal at Satyam Computer Services rattled corporate India, the Registrar of Companies (RoC) in Andhra Pradesh has found evidence of fraud in nearly three-fourths of the 1,234 public companies in the state.
Software firms, pharmaceutical and infrastructure companies feature in the list of firms, popularly called ‘vanishing companies’. These firms have no business operations, cease to exist in their registered office, and have defaulted on filing their annual returns with the RoC for a period of two consecutive years. All letters addressed to the head offices have come back undelivered.
“After conducting preliminary enquiries, the names of the vanishing companies are forwarded to a task force committee in different zones and the central coordination monitoring committee co-chaired by the Sebi chairman and secretary, Ministry of Corporate Affairs. Once they are scrutinised by the two bodies, the RoC can initiate legal action against these companies,” said a senior official in RoC, Hyderabad.
According to the Companies Act (1956), every listed entity is required to file their annual results with the local stock exchange, the city where the company is registered and with the Sebi.
Promoters and directors of these vanishing concerns have disappeared and are believed to have induced people into funding their companies when the markets were on a bull run some years ago.
The state, with about 1,234 listed business concerns presently holds the record for the highest number of companies that subscribe to public money in the southern region.
The arm of the MCA is inundated by a number of mega and medium sized registration every month with many firms listing their enterprise with the stock exchanges. Last month alone, over 350 companies registered themselves with the RoC in Andhra Pradesh. The RoC has already cracked a whip against vanishing companies to safeguard interest of investors and had booked many of the fly-by-night operators. It has filed cases in the economic offences court against the promoters and directors of a handful of these companies for violating sections of the Companies Act.
While some cases have been filed in the court based on investor grievances, the RoC in others, has taken suo moto action to punish corporate offenders.
Thanks a lot man!. I was plannig to earn my hard earned money in this company based to news recommendations to buy it. Your analysis is an eye opener.
ReplyDeleteBeware of Bartronics - Another Satyam in the making. Also the debt is huge; cash flows are almost zero - They are not getting paid for thier products.
ReplyDeleteBartronics india Limited, the companys fraudlent manipulation of the system should be studied by Harword university or IIM's and ISB's.
The company being promoted by M/s. Sujana Group well know intellegent company in manupilation of funds withing the system.
the modus operandi of the Bartronics is to inflate sales! better known as NOTIONAL SALES OR STRUCTURED SALES as mentioned by their whole time director Venkatesh Rao, which by the law of the land is legal for inflating turnover and for raising funds and share price riggng. The fraud committed is very very complex in nature, the group have 25 odd companies and one company bills the other and this goes on with cash flowing from one company to another
Secondly the higly priced acquistions made which have resulted in loss making and good route to divert funds
The finance managers had conned many private investors to buy the stock at 220 levels and hold for year with a promise to take the share price to 400 to 450 levels,
ReplyDeleteAgain these finance managers are promising private investors to buy at current levels and hold on for a year promsing that the price will go to 300 to 370 levels Private investors be aware do not fall into the false promises
Thanks for bringing the light in the financial sector and guidance & information to investors. we suggest your cooperation to weed out companies like SATYAM. It is very pathic to state that this company being listed doing something called STRUCTUED SALES OR NOTATIONAL SALES - i.e. sales within its group companies on paper without any real business, and the daring part is that these companies openly quote that the notional sales & profits shown are done for Loans,share holder confidence, higher valuations purposes. This trend is widely being under taken by the group & some hyderabad based companies,
ReplyDeleteit is frusturating to note that the finance controler decides what will be the next year /quarter sales target and instruts the sales staff to ensure the cash flow for manupilation
Your good selves will be suprised to note that a company claiming of doing a business of 800 crs have hardly around about 50 employees without any temporary staff,
These type of inflated companies are spoiling the whole growth of our country
Bartronics is promoted by Sujana group - i.e. Sujana Metals, Sujana universal, Sujana towers, Indus Networks,
ReplyDeleteALL THE COMPANIES ARE NOTED FOR ITS FRAUDLENT TRANSACTIONS, MONEY LAUNDERING, TAX EVASION ETC
I really pity- it is really paralysis by analysis. This company is a sureshot mini Satyam. I know their operations inside out. The global and india employees are nothing but sons and daughters of promoters and political well wishers. The whole show is a farce. They only want valuations rather than value. They do have ornamental offices. They are just playing the stock and bank loans. I wonder what SEBI and other regulators are doing?? It is a shame.
ReplyDeleteI was wondering why this stock is beaten inspite of posting good performance year after year and good order posisiton. So I made a search in net for information. Thanks for yours. A reasonably logical analysis. Why a promotor would reduce his holding if their venture so so promising?
ReplyDeleteCan you imagine the 'influence' of this company and its promotors? The Bartronics stock was listed as the hottest buy by the 'equity master' and quantum at Rs 170 levels. The research team and the owner of equity master pride themselves on being objective and claim to follow warren buffet style of value investing. It appears that the promotors of this company could buy out all such influential people.
ReplyDeleteI invested in the FCCB of Bartronics which is to mature in 2013. Anybody has any idea as to what will happen to these FCCBs ? Co's Sep 2011 financials seems to be OK and is not revealing any problem in servicing this debt. Pl share your experience / info if any available.
ReplyDeleteSorry to say boss........AAP LUT GAYE....100% Fraud Company!!!!
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ReplyDeleteBartronics bought 'SRG America' a desi owned software fake resume vendor in US for $50 million, actually it is worth for nothing, need to shut down right away, if they want to avoid losses. SRG stakeholders called pudarikans, sudhir moni, ragus all pocketed the free gift money and escaped. now this unit is a 50 million US Dollar liability for Bartronics. that why promoters reduced thier own stock!
ReplyDeleteBartronics - default in paying salaries from last 6 months to the employees, now a days, it is doing business with the name of bartronics global solutions too.
ReplyDeletemicrosoft raided this company last month and seized the systems as the bartronics using pirated softwares in large scale.
ReplyDeleteBARTRONICS is a cheat company, They never pay wages to their employees. There is a guy in this company by the name of SUBHASH ARORA who is a stealer, eating everyones money and Let me speak in hindi.......he is khabri. he will never ever stay happy in his life...........NEVER EVER WORK for BARTRONICS. CHUTIYA LODU COMPANY!!!!!
ReplyDeleteHi, I am vendor to Bartronics india limited, the so called public limited company and they are not willing to pay my dues as i am a vendor.I request all of you please do not take any work in specific FI project and uidai aadhar projects from bartronics india. They are all time fraud company and they give you lots of stories.Every 4 months their staffs are changing including there management. Be careful with the bunch of cheaters in Bartronics board.Thanks
ReplyDeleteThis is totally a fraud company and the master mind is "Mr. RAMANA-09849096657". This person take services of vendors & hire talented peoples from market. after some time they stop payments and salary of talented peoples and then they force them to leave the company without any payment. I request to Indian government to kindly take action against these type of companies
ReplyDeleteBartronics.. A Company run by bigtime assholes.
ReplyDelete