Even though the co has very small listed history, it has been a growymtg co based on management guidance (for me). The guidance was alwats based on existing order book and ongoing talks with the customers.
Now, for any co, even the management doesn’t have much capability to predict about the deferment of orders. That’s okay the management couldn’t predict and do missed on the guidance
The risk that has played out is the customer concentration risk. If, the customer concentration risk weren’t there, the management wouldn’t have missed the guidance by so much margin.
What could be the way forward
- Bloom evergy coming back with orders and taking deliveries. But, when will this happen
- Revenue from other verticals increasing, which reduces the dependence on single customer. A major risk would be eliminated
- Penalty clause for future orders, contracts. But, I believe the co. doesn’t have enough power for a customer to agree to such deals
Disc: No personal investment currently