Looks very good from all angles..
Branded product available at the price of a commodity with long term growth prospects that too without limited capex. Current plant in Dhuri is still under utilized. No need for much capex for next 5 years.
They have promised to reduce debt levels from 2015 onwards which is again encouraging although I couldnt find that statement in the latest investor ppt. Nonethless it is still highly undervalued, following are some areas of improvement:
- more capex in renewables may be unwarranted, not much value add there, why dont they pay more dividends or repay loans, I am positive this would improve
- not to compromise on margins despite difficult times especially this year and focus more on branding in middle east etc
- need to verify whether its somewhat insulated from paddy prices or can they pass on the prices in the long run
| Subscribe To Our Free Newsletter |
