Wanbury – My Personal Thoughts !!!

Wanbury’s business was never a question mark, only its debt was and now that the company is addressing the debt problem , I believe its re-rating is due. As I had written in this blog, the company has some wonderful brands and on back of that, I was hopeful that they could solve the debt issue “if” they really wanted to. Now a couple of developments have happened. First they have addressed the debt problem by selling some brands to cipla and have got more than 88 cr for that and second, they have had Edelweiss Asset reconstruction company taken stake in it which basically means that this cash may not vanish – although in all honesty even if Edelweiss wasn’t in picture I wouldn’t have worried as there was no incentive for wanbury promoters to vanish this cash since Wanbury is not a simple manufacturing company but something with brands and if they at all wanted to dump the company they wouldn’t have carried on with this burden for so long.

Another interesting bit that I find is the valuation of the company. Now the company has sold 12% of its revenue generating bit at 88+cr, which roughly means that the promoters, even at distressed valuations think their company is worth more than 720cr and even if I give a discount of 1/3rd, then also at the current market cap its just around 10% of that distressed valuations. This, I personally find very interesting and therefore, I am once again very bullish on wanbury. Please note this is my own personal thoughts and is for academic purpose only.

Can this finally be the moment of wanbury ? Let’s see.

God Bless !!!

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14 Responses to Wanbury – My Personal Thoughts !!!

  1. Ankur Garg says:

    THANKS ACE SIR FOR YOUR UPDATE

  2. Ramkumar Nagaraj says:

    what is future prospects of this firm? do we no when re rating is expected?

    • i have given my perspective on this company …pls have a look at it and read the ARs to understand more. As far as re-rating is concerned its directly dependent on the performance. if the thesis is correct then we should be on the cusp. I would be eagerly awaiting next few quarters performance.

  3. mahendra oswal says:

    Thank you Sir. Nice update.
    I already bought wanbury for long-term.

  4. thanks for your info,
    I really read every blog and email
    please keep it up to encourage genuine common investor

  5. Shivaya Parmeshwaraya says:

    Hi Ace,

    I am curious to understand what went wrong with the company after the original post.

    The analysis done by you was thorough and the story was good, still it didn’t perform.

    I would appreciate it if you could give me rope here.

    P.S. I am new to the markets hardly having 3 years of experience.

    • the company didnt perform as per thesis and didnt address the debt issue for long time. this is the reason i had dropped it from my radar and now since they are back on track as per my original thesis, i got bullish again. Please research the company and understand it. This is my personal take.

  6. Satyanarayana Bobba says:

    Why AIMCO Pesticides is not performing from so many years? Is it good stock for investment? What about management quality? They have huge promoters pledge shares. is it reason for not performing from last 3 years? I am holding these shares from initial IPO. Please share your opinion.

    • I am sorry, i dont understand. The stock had gone up more than 7-8 times since i first discussed the stock. You had the share since IPO …you must have been tracking it ….isnt it. One shouldnt forget their investments. Please read the stock story I had shared earlier and do your research again. at 250-270 you didnt realize you had shares and now you are realizing. this is not good. pls be more careful and aware of such long term investments.

  7. jayachandra gummadi says:

    Hi Ace Sir……..what is the current debt for Wabury?

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