Sure the company will experience headwinds in the short term due to the gas crisis in Europe. But the global gas industry is so large and that this company’s sales being just a chicken feed, it can quickly readjust itself to different markets to ensure it runs on its full capacity.
What we have to look for is the day when the company gets the confidence to expand in a massive way that it’s products no longer remain chicken feed for the industry.
It’s worth noting that the company is aggressively building its cash reserves which may well be to partly offset the capex/investment needs when it chooses for a massive expansion either organically or inorganically. I won’t be surprised if it goes through a combination of debt & equity route to finance its expansion plans within next 2 to 3 years.
Alternatively, distributing its cash pile as big dividends will strongly indicate the company has no interest to grow further.
Who knows, it may also go back to its roots 25 years ago when it was a Financing/Leasing business. (Refer Annual reports for 1998 & earlier)
I see one of this unfolding within next 2-3 years as management will soon loose investor’s faith if cash is just kept locked without any productive use.
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