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Sam Industries


Sam Industries operates in three business segments i.e. Soy Products, Welding and Real Estate.

It is a supplier of soy products including de-oiled cakes oil etc., welding products and invests in real estate ventures including housing construction and sale.

The company has reported erratic revenues and profits over the last five years – reporting a net operating loss of 3cr on revenues of 24cr in the last financial year.  However, it had minimal net debt as at last financial year end.

The soy business is exposed to the risks of fluctuating soy seed prices, which is dependent on monsoon conditions.  The welding business is exposed to the cyclical metal industries.  The real estate venture appears to indicate a lack of focus and is subject to the risks of interest rate cyclicality, high competition, execution delays etc.

Management does not declare dividends despite lack of profitable growth in its core businesses.  Instead they have made unwarranted forays into real estate ventures, which appear to be clearly outside of their core competence and certainly not what minority shareholders would’ve wanted them to do with their money.
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  1. ujjwalSeptember 2, 2011 at 4:11 AM

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