Extremely sorry as I did not mention Disclosure and Risk analysis earlier. Please find them below:
Disclosure: Interested. Not yet invested yet due to risk factors below and competitor analysis is in progress, will update once decided on them.
Risk Analysis:
1.Management Credibility:As members have pointed out(PG Electroplast - Potential for cooler returns? - #2 by akash_das), company promoters have been in money siphoning case earlier, I read the court case document and verdict on it. The money siphoning allegations were disproved by them(though they did mention that it seems hard to accept all the activity happened conveniently between final RHP submission and IPO listing). The company was charged 5 Crores for non-disclosure of material information(bridge loans and land deals). It has created a neither pure black nor white scenario, I appreciate members’ insight on management credibility.
2.Very less cash n equivalents to provision for bad time. I see Only 44.7cr of cash against 163cr long term borrowing. Interest coverage is 4.7 for current quarter(provided company can maintain the costs consistent, it has sufficient coverage to cover it seems). long term borrowings are term loans which is a risk in case of bad situations. Also as company is already operating at full capacity utilization, from where it will raise the funds for further expansion?
3.No cash flow statement in presentation/publication.
4.Competition analysis is WIP and I will post it soon. Request to members to post their views on it.
If members have insights into management credibility and we are willing to give it a chance, I will also visit to their manufacturing plant to get a view on how things are going.
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