Hey Harsh,
I was looking at this company today,
Business is growing at high rate, but I see a problem with it.
- Demand of working capital can not be entirely fulfilled through internal accruals and there is limited scope to increase debt as Interest coverage ratio is low, so equity dilution is the way going forward I think.
- Dividend shall go to zero as company will not really have any free money to distribute.
- Lots of other income come from gov. schemes and FX, if any changes happen to that then business valuations may come down overnight. Possibility is low, but it is still a risk. FX can vary.
Its a good thing that you allocated just 1%.
Would like to know your views.
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