Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What future you perceive for SPIC. Some time ago some one commented in a financial site that SPIC will become the Infosys of fertilizers. Of course a shrewd investor will laugh at this and ignore it. But what about poor innocent investors. Obviously they will be carried away by this and eventually will be deceived. Your views?

Asked by Good Citizen, 04 Aug '10 05:20 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (1)

 
1.

Doubtful if SPIC can make such a dramatic turnaround. They are ridden with serious debt and there is a huge outflow of interest every year. Recently, they had sold the Heavy Chemical Division to one of the Group TN Petro to get some cash.

But there are so many other problems plaguing this company for the past decade. The fact that the Management has not been able to get hold of the issues and resolve it reflects poorly on them. May be Muthiah is getting hold and a new generation with fresh thinking can do something to make this work. They need lots of cash, which might come through the sale of their huge assets in and around Chennai, for which they have done some tie up, as explained in one of my answers a long time back (may be 8 months ago). There is also a problem about their equipments which are of old vintage and they have never had the money to go in for modernisation when they were struggling for sheer survival.

Then, you have to consider that fertiser industry is plague ...more
Answered by Omega, 05 Aug '10 11:01 am

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

Value for investors can be made only if the company consistently holds a good management record, good revenue generation, good net profit and sound fi..more

Answered by Omega