$1B stake sale by the promotors may help pare some debt, but as you mentioned more would be required since approx 4.5B$ of debt is maturing by March 2025!

Also the recent statement by SC that the copper smelter in Tuticorin is a National Asset and hence needs to be restarted soon is a big positive!

Technical Analysts also seem to be liking

https://x.com/Sahilpahwa09/status/1754912932972933535?s=20

Got it, thanks. Yes, the liquidity risk I understand. But I am not looking to sell before maturity (or at least I hope I don’t have to). Had historically stayed away from higher-yield bonds more due to concerns of payment delays. So it’s good to know you haven’t faced that issue so far. I suppose I will nibble a bit though I prefer safety much more on my debt portfolio even if the yield is lower. I am trying to arrange a quarterly income stream, somewhat like you have done.

Appreciate the disclaimer

The company is well-poised for growth and there are multiple variables which are likely to support:

• Increase in capacity utilization from current lows of 55-60%. With no major capex planned, expect operating leverage to play out.
• Scope of margin expansion from current 9-10% to 12-13% in the short to medium term
• Deleveraging (to repay debt of 140 crores in next 15 months). Could be even higher if company generates better CFO
• Integrating manufacturing facilities for better operating efficiency
• Topline is expected to grow at 20-25% and with all the variables playing out, the bottomline could easily grow by 30%+
• Likely to generate CFO of 350+ cr in FY24 which values the company at 8x of CFO (very reasonably priced)

Obviously, there are risks in terms of higher customer concentration and external vulnerability to slowdown in 2-wheeler market. But on an overall basis, the risk-reward ratio is quite favourable at the moment. Any thoughts?

“As the Hon’ble bench was not assembling post lunch, the court has adjourned the matter to 4th March at 2pm”…

What if the court is not assembling again post lunch on 4th March!
Is this normal or one off? Seems Indian Judiciary needs a serious overhaul!

The only thing that’s makes me interested in the company is sheer negativity around it.

When everyone else is bearish, there’s always an opportunity to look for.

Yes I agree that the valuation might be on higher side but remember a few days back when it rallied from 500 to 900 everyone was talking about 2000 again, that’s how it is.

Recently started adding a very small qty and will add more (as I think share will tank more from here)

PPBL licence will affect that company but the problem is solvable in the long run, there was slight irregularities in the way they used to operate but there’s no sign of the fraud or mismanagement on overall company level.

Positives I am seeing:
Huge customer base
Revenue rich segments like soundbox merchant services
Trading in the range of .15x -.25x compared with ipo price.
Restructuring in loan business.