Been holding this from 2016 and have witnessed a number of cycles with Kitex.
After reviewing the Q3 result and considering significant capial commitments for the new plants coming up in Telangana, I have decided to book loss and exit my holdings.
My assessment is that this phase(over next two years until new the new plants are fully operational and profitable) is likley to be pose significant challenge to the management. Large capital outlay coupled with lack of operaitng cash flows is not good news for investors. I certainly hope management can come out of this phase stronger and build a world class Indian company(I have bought their infant and toddler products for my own son and as gift for others and can certaily testify that they are of the finest quality) and hope to reenter once green shoots are visible.
AJ
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