I have been tracking Ess Dee for last 2-3 months. The only reason that interested me is the fact that Sequoia picked up a small stake in around Jan'11 @~Rs440 and then added substantial stake (now total stake is around 6.7%) in Aug'11 @~Rs.220.

I understand that this is not the smartest way to invest. But, I trust these guys like Sequoia are like vultures who will scrutinize a company very well for months before investing and then sit on the board after making an investment. Recently, they picked up a good chunk in the company I work for and the main Sequoia guy has joined the board of directors. That Sequoia guy has been visiting our office and meeting the senior management for almost an year.

Another interesting thing is ESS DEE is in a boring business and is held by strong folks (promoters, FII and Corporates hold around 95%). It is not recognized by the street (retail junta holds a small amount). So, currently there is no frenzy. When ever there is PE re-rating, there could be great upside.

I would like to get the views of Teddies, if you guys currently see value in ESS DEE from 3-5 years perspective.

Regards,
Vijay

Fact that most of the shares are with promoters and institutions indicates that there is something right with this company..  Any idea on the poor performance in the last quarter?

Fall in Aluminium prices is good for packaging companies such as ESS DEE..

http://economictimes.indiatimes.com/features/investors-guide/aluminium-prices-unlikely-to-rebound-amid-a-slowdown/articleshow/10793765.cms

I have started picking up ESS DEE from these levels

Regards,
Vijay