Very little independent diligence done by analyst community for Manpasand Beverages, said 2Point2 Capital PMS' fund manager Amit Mantri.

“The fact that they were generating so much revenue from the Indian Railways was not adding up. We were trying to do basic back of the envelope calculation and the numbers were not adding up in many cases when it came to Manpasand and that is when we decided to spend some time, to do some surveys, to ask consumers whether they are using this product,” he said.

“It operates in a segment that is quite interesting, beverage consumption should be increasing and this was a company which was reporting phenomenal growth. I can understand why the investors, who were buying the stock, loved it. Even we would have probably bought it for the same reasons,” he added.

Amit Mantri became one of the most sought after voices on Dalal Street after the Manpasand Beverages stock price crash because of a blog he wrote two years ago warning investors about the corporate governance red flags in the company.

First Published:Jun 7, 2018 10:53 AM IST