Guys here is my anti thesis, so please ignore it if you don’t like it…
After going through investor presentations, last annual report and this blog, I feel everything is way too perfect…Presentations are glossy with lots of pictures, lots of customer logos and photos of rockets, satellites thrown in to add more impact. First 30 pages of annual report talks more about their products, capabilities, customers etc. (almost feels like sales pitch) Their board is full of ex ISRO, ex DRDO, ex Bloom energy, ohmium executives.
But as you dig deep, you come across company’s over dependence on few customers like Bloom Energy. Space and Nuclear is mainly B2G business as of now, which means it will be long cycle low margin business. Company talks of building capabilities and new products but only time will tell if that comes true. Promoters hold less than 50% stake and continues to reduce it further. After going through their capability, products and expansion plans, I get a feeling that company is trying to be supplier of “everything to everyone” as I feel company spreading itself too thin and lacking focus on doing few things great.
So I will be watching this company for few quarters to see 1. whether company can meet its guidance 2. whether promoter stake sale continues before taking call on investment.
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