This can be treated as a “red flag”. Capex is regularly used by companies to divert money as per seen in few of my bad investee companies like Talwalkars and Manpasand Beverages.
Not saying there is necessarily fraud over here but any company, doing regular large capex without commensurate increase in capacity, calls for deep dive analysis for sure.
Disclosure – in watchlist
| Subscribe To Our Free Newsletter |
