In case of Force, the issue of business cycle is accentuated by capital structure. If you compare the latest debt approx. 1000 cr with negligible in the period of 2013, the interest expense and debt repayment will depress earnings for medium term. It would be Interesting to see how market value the firm with depressing PAT yet good CFO if cycle turns positive.
In case of Shrimp, it’s very early to say we are around bottom. If you gather industry insights from different stakeholders, the overcapacity challenge is clear for Indian exporters. The overharvesting by shortening shrimp production cycle by farmer is a long term problem. One may want to understand the deterioration of shrimp in Gujarat in last decade.
Disclosure: No holding in above names.
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