“siri tha vachhinA vachhunu
salalithamuga naarikela salalithamu bhangin
siri tha poyina povunu
karimingina velagapandu karanini sumathi!”
We can infer the wise words of Poet Baddena Bhupala (A Chola prince and was a Vassal under the Kakatiya empress Rani Rudrama Devi) to the stock market so well. As said in the first two stanzas of the above poem, if you are a wise investor, fortune may creep up into your portfolio in the form of Kiri Industries as if the sweet and delicious water enters into the coconut.
The Government of India is contemplating to impose anti-dumping duty on the Chinese' cheap imports of speciality chemicals and dyes. The duty may continue for five years. It shields the domestic producers of dyes from dirt cheap imports. Particularly the manufacturers of dyes from Sulfonate group of chemicals will receive the highest protection. Kiri Industries Ltd comes into this category only. Moreover, it is this company that produces Vinyl Sulfonate in large quantity.
Apart from the pending refunds relating to exports from GST, the most important factor is a pending case in the Singapore court. The case has now come to a final stage. It is not about any serious dispute. It is all about the confirming the valuation of the equity shares of subsidiary companies. The final hearing is scheduled for January 11, 12 of 2018. The court may pronounce its final verdict in a one week or so from then.
As per the expectations of “Share Guru", the Chinese counterpart may acquire the stake of Kiri Industries Ltd in DyStar International by coughing out a hefty premium. Kiri will probably get Rs 2,500 Cr to Rs 3,000 Cr as sale consideration. It won't be an exaggeration to expect the stock of Kiri Industries would touch a four-digit price with this kind of windfall. The only question is how long it will be before the stock reaches the four-digit level. It all depends on how much time the Singapore Court will take to deliver its final judgment. Anyway, the probability is very high for getting Siri (wealth) in Kiri. (Excerpt from this week’s Editorial).
Have a wonderful Pongal!!
(Doradla Siva Nageshwara Rao)