@prashantrane2000
Thanks for your valid comment. Only explanation and ratonale I can find is the employees working from home. Also, Average median salary level Rs 300,000 per annum indicate very lower skilled manpower being employed by the company. Having said that, I completely agree with your observation about 8 years+ experince manpower and average cost being so low. We need to be watchful and also explore reasons from management in case we get opportunity.
Only comfort for me in this investment is actual Dividend payment from the company. While it is possible that business may required very lower skill set and not a major value added, but then, that does not add up with more than 40% operating margin reported by the company in last 4-5 quarters. Exponential growth, lower employee manpower cost, lower internet and electricity cost are genuine concern about the company and we need to take that as major risk factors while looking at investing in same.
Since absense of any information, I have initiatited only trakcing position of ~1% in my portfolio. Not sure whether it would become core portfolio. However, this become part of high risk, high return (or rather high cashflow return) portfolio.
Please note that my understanding of company cashflow and business model may be completely wrong. I have faced multiple failure in investing and paid my tuition fees. The current investment would end as wealth accretive or tuition fees for me, only time will tell. Till that time, I would keep my first name (i…e Dhiraj) and closely monitor development in the company.
Discl: My view may be biased, my assessment may be wrong. I am not SEBI registered advisor. I AM NOT SUGGESTING ANY INVESTMENT ACTION. I have been wrong mutiple times in past in my investment jounery and may repeat same mistakes in future. I have added my holding in company in last seven days, but it is still ~1% of equity portfolio.
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