Olympic Oil was a dormant company until the last quarter when it showed a spike in operating activity. The company is currently promoted by a Mr Sunil Varma and a Mr Uday Desai from Kanpur holding a combined 31% equity stake (after an open offer in 2010). The public still holds 69% equity in this company. A perusal of its public filings reveals changes in its memorandum of association to include trading activity for all kinds of commodities (agri-commodities, extracts, oils etc.). Further, there appears to be substantial additional financing in the past few months to enable this business. Latest balance sheet is unavailable – therefore, the amount of external debt to equity capital is not readily ascertainable. The company appears to have generated 48 lacs of profits on substantial revenues of 38 crores in the last 12 months compared to nothing in the last year. The profit margins are marginal, as expected in a trading business, but the interest cov...
An Individual Investor's Perspectives On The Indian Financial Markets