The ‘working capital’ discussion has been done to death in 2020-21 timeframe. You can scroll up and read arguments and counter arguments. Dr. Chava’s miss about guidance for destocking made me trim my position in 2021. He was asked multiple times in 2020 oct earnings call about impact of stocking in profits. As of now, I look at it as over enthusiastic management unable to see the headwinds. I am looking for someone here to give some reasons as to why managements could mislead this way (Not implying they are misleading). In any case, the management looks bad at forecasting.
Edit: yet to understand the impact of exchange rates
Disclosure: Still having a position from lower levels. trimmed a lot in 2021. The charts do not look encouraging. Need to read up earnings call.
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