Thank you for your explanation, I really appreciate this insight.

I have a slightly critical view though, I don’t think one can compare current quarter receivables to the TTM sales (when receivables were in tighter check). That way, you’re essentially saying that “Receivables aren’t a major issue right now because they haven’t been high with respect to past performance”.

Since 2/3rd of the payment hasn’t even been received this quarter, I don’t think one can be comfortable with the company doing 25 crores of net profit (when 6 Crs of money hasn’t even hit their bank).

I agree that it is very likely that entirety of the 62 Crs of receivable revenue has shifted to B2B. That itself changes the valuation dynamics, since by company’s own admission, their margins are 2/3rd of their margins for B2C. I’m not even thinking about other considerations such as client concentration (for example, what if the vast majority of that 62 Crs was owed from a single client?). I guess I’ll wait for the concall to clarify things.

Thanks once again for engaging in discussion. Really nice perspective from your end.

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FY25 Guidance was 500 crore if you look at con call.
They acquired another company which has low margin to get entry into Europe which contributes around 17 to 18 crore I think this quarter. so the revenue has hardly moved probably still reeling from the effect of more supply and demand still recovering
Now we can do 2 things. Either invest and hope the expansion of 600 crore will contribute well over next 5 yrs or wait for 3 to 4 quarter to see if they are producing the results and then start adding positions. The other alternative is wait for market downturn where the macro env can provide us with a better entry point which provides a margin of safety

And finally are there not better opportunities elsewhere ?