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Dolat Investments


Dolat Investments is in the business of stock and now, commodities trading (major % in last financial year).

The company lost a portion of its net worth only in 04/05 but managed to stay afloat in the 08/09 as well as current market downturn.  Otherwise, the volatile performance corresponds reasonably well with the stock market cycles over the last five years.  The balance sheet revealed large liquid (cash) balances in excess of 70cr as at 30th September, 2011.

Management claims to operate with a diversified portfolio in a conservative manner.   Moreover, they are now applying for a brokerage license.

Trading in the stock and commodity markets is inherently risky when exact trading strategies are largely unknown particularly when short positions are involved which exposes the company to potentially unlimited losses.  Moreover, operations in the financial markets are subject to all the myriad risks impacting the capital markets such as economic and political factors along with general market sentiment.  These include factors such as inflation, interest rates, FII flows, government policies affecting the investment climate, crude oil prices, global economic growth and other investment specific risks.

Minority shareholders ought to be also aware that management pay brokerage fees to related parties, which may or may not be on an arm’s length basis.

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