Recently started studying this business.
Some very layman questions based on quick scan of financials.
- There has been constant equity dilution historically. The size had doubled in just 7 years. Has management ever commented on this and have they actually walked the talk on this. Diluting existing shareholder wealth is never an investor friendly action unless they got it through high valuation QIPs which is not the case here (warrants).
- The debt has always been a bit high ~ 1.02 times. It has started reducing recently but is there any ballpark figure mgmt has guided considering no medium term capex and debt ~ 5xCFO.
- The business seems to be cyclical in nature if one looks at net profit. Seem like peers like Fortis also display this tendency (although it is much more cyclical). Since we are not looking at much capex in medium term, is it fair to assume, the next 4-5 year cycle will be upturn one only ?
Would appreciate if anyone tracking this business can answer. Thanks.
@Rafi_Syed @KC1986
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