Kaashyap Technologies Ltd: Expanding business

The week that went was volatile, to say the least. It started with the JP Morgan chief saying the sensex could be 30000-40000 in the next 3-4 years and just about ended with Warren Buffett saying the global economy (read US) is still in a shambles. The truth? No one knows, if you ask me. But we are gamblers and long term investors - cyclical events shouldn't affect the likes of us! I was chatting with a friend, and we stumbled upon the topic of penny shares - those unguided missiles that sometimes hit the bull's eye! I am attempting now to bring out the brighter specs of a (i wouldn't use the word "scandalous", although it does seem fit if you understand the manipulation- pun intended!) 1 re fv share going in discount.

And that is exactly why i have decided to bring forward a stock which has some multibagger potential. Kaashyap Technologies is one of those penny shares that one would look at with caution. But when one finds, in the shareholding pattern some names, one starts wondering. Now let us see what we've got here. Ladies and gentlemen, the shareholding pattern of Kaashyap Technologies Ltd:

Promoter holding: 1.33%
Public holding: 98.59%
(DRs: 5.5%)

Out of these 98.59% of public shareholding:
Angel Broking: 1.71%
Religare Securities: 1.24%
Lotus Global Investments: 1.68%
Somerset India Fund: 3.38%

There can be many other holdings that havent been mentioned here.

First, i'll tell the bad things. Promoter holding has been reducing quarter after quarter and also, the promoters have already pledged more than half their meagre holding- they have no interest in the company, it so seems. Now i'll say why i used the word "scandalous". Have a look at the shareholding. Why would Religare or Angel be interested in a company where apparently, the promoters don't hold even 2% of the total shares. A year ago, the same management declared bonus shares 1:6. "Whoa?!" Apparently, the company had done very well the year ended then, as is visible from the balance sheet of that time. It will be announcing the results on monday or tuesday- and if they're good, this stock will sure be moving. But what if it's bad? It'll still be moving! Courtesy the 99% shareholding of the public that doesn't mind which way the company is headed!

Which way, then is the company really headed? From the announcements, one is impressed, really. With near 1% holding in the company, the promoters (read "managment") are taking strides to expand business. It announced the acquisition of Logistics Solutions Inc in April this year. And the company isn't really all makeup. If you google "Kaashyap Technologies Ltd" you'll find adverts in popular sites for SAP training, etc. It focuses on SAP, by the way. According to this announcement, the company has undergone a major restructuring- and we should look forward to more good results as were there last year- although the consolidated figures are slightly less than satisfactory, the final blow may come this monday-tuesday.

I will not speculate on this- just bringing this scrip to the long term investor's attention. Buy it if you feel like, dump it if you feel otherwise. It's a penny, after all!

Edit: If you DO invest, make sure you're never going to need that money that you're putting in here for ANY other purpose. This is the RISKIEST pick that i'm suggesting.