Thanks for your update Rajeev.
No one noted, but promoter Mr. Garg has released 1/3 of the pledged quantity as per information to exchanges on 28th Sep. Looks like over time all the pledged shares will be invoked. All round positive vibes. Pledge down from 14.34% to 9.01%.
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Recent Govt. win is not informed to exchanges as this might be a normal course of business procurement, but is this the large govt. order that the company is talking about off late (in AR, Investor presentation)?
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Agree to your assessment that if there is no hedging, then the benefit of recent rupee depreciation will directly flow to bottomline (should be around 50 lakhs – 1 Cr). But again, as posted above, it will be risky if INR depreciates, I hope management has a framed policy as currently its majority revenues are from exports.
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As per your expectation, if the company declares dividend, there could be further re-rating as people will be convinced about its cashflow and revenue visibility.
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I think the main thesis here is 1. Revenue visibility and bumper margin expansion as no CAPEX in the foreseeable future also leading to free cashflow and dividend.
Initiated a small position, volumes are really low with no institutional/FII interest as of now, which is a big positive I think. Based on Q2 results, will further invest into this company.
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