Immediately after the takeover, covid happened. They have been working on new initiatives like mentioned above. They are aware that, the sector is very disruptive. So the cash is there for promotion of new initiatives or if any new inorganic opportunity comes up. Mgmt. is very conservative about how they use the cash. For now cash earns 7-7.5% kind of yield. They have been focused on bringing the core business back to pre-covid levels, that is showing results over last few qtrs.
VSS Mani, who comes from very humble background is still at the helm.
This old article, gives good account of the man.
As investors we need to keep an eye on how the puck is moving. For now, mkt has ignored the improving dynamics of last 5 qtrs.
Their qtrly revenue run rate inching closer to indiamart’s levels, but margins are nearly half and improving. But the valuation gap is too wide.
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