Personally, a downgrade for me because of the management. When company announced ECH and CPVC for the first time, they guided that both combined will contribute 1000 crores to the topline, then some time back, they change the guidance and said ECH alone will do 1000 crores and in latest concall they said that combined will be 800 crores.
Similar for Chlorotuolene, the guided earlier for 500 crores and now reduced it to 350 crores.
Plus for ECH, they mentioned that the contracts are such that they will get from January ownwards only but if this were the case then why plan project in a manner that the plant was completed in July? It should’ve been planned in a manner where it is completed somewhere in the middle of 3rd quarter.
So, I’m getting skeptical about management. Also, I don’t like their biz. With Meghmani Organics because their debtor days are stretched on that end.
Although, the products they are introducing are import substituted which gives good hold to it but they are not able to give guidance properly. Again they’ve guided for 4000 crores which seems unachievable to me.
Still I would like to be invested because they are focussing on import substitution, but I would wait further to reach to my desired valuations.
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