Hi Rupesh,
Thanks for the detailed post. I agree with your thoughts and insights. I think the company is at a very interesting juncture. The most important thing about this company is the high margins and profitability track record they have had…its actually rare and perhaps a case study to find such a company in the textile sector. Having operating margins of over 25 (infact closer to 28-30%) for so many years is really rare. But the limitation was growth…the co was stuck at 130-140 Cr turnover range for a very long time. It’s only in recent quarters that they have started growing (after doing decent capex in recent years) and the latest annual report is very aggressive and a delight to read…if they can actually grow and deliver on what they are talking, I feel there is lot of value at these levels. But then we need to figure out more about the growth drivers…in past the co has disappointed on the same.
Ayush
Disc: Invested in family and client acs
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