Overall profitability of the company is not great. Iron ore mine benefit is already in the numbers, Coal will be additional. Company can go to Rs600-700cr EBITDA range. Confidence level on management is low and market perception is not that great. Stock can go up further as markets are being crazy. Personally I think there are better stories in the market.

I think the market is also becoming aware of the fact that there are some scalability issues because of the nature of the business they are in.

I understand there are substantial contract wins, and the top & bottom-line prospects of the company in the future also look good. However, it requires significant investment for the company, not just in allocating capital for fixed assets but also in a skilled workforce and retaining the same over time. The complexities of the products they build are reflected in their margins. Still, in my view, the scalability for such a business is all about execution, and with increasing size, investors cannot think of any non-linearity in the growth of the top-bottom line for this company.

Disc: small tracking position

Has there been any fundamentally negative news thats has led to the stock correcting significantly in the last few days ?

https://x.com/ipo_mantra/status/1755078221614248257?s=20

Quote:
“2 points to note here to get HNI Allotment in SME IPOs:

1. HNI Allotment is proportionate.
2. You need to apply equal to or more than HNI Subscription to get confirm allotment.

Example:

If HNI subscription is 40x then apply at least 40 lots to get confirm allotment

If HNI subscription is 150x then apply at least 150 lots to get confirm allotment

If HNI subscription is 470x then apply at least 470 lots to get confirm allotment

And So On …”

Huge amount is required for confirmed allocation. It would be better utilised in secondary market.