Hi Sri,
I feel the Co. has a niche in the sense that the work it’s doing will not interest the big boys. What stood out was that the mgt was fixated about costs. Small things like calling the AGM in the office, which itself is not fancy, located in a residential bldg. CMD himself highlighted that the Co. did not employ any peons & they all made their own coffee! You could of course argue that this is not a mantra for success, n you may be right. This mind set however comes in handy when it comes to bigger decisions like buying the new OPV. Apparently there are lots of vessels for sale floating around, but the mgt is looking for a distress seller. The first OPV had a payback of only two years!
However, this is not a Co. to be reviewed every qtr. There is an element of seasonality in the business. If one is looking to make a fast buck, then perhaps this Co. is not the one. I feel that with a bit of luck, this is one investment that could stand out provided one is willing to be a little patient.
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