I think he has shut the shop or sold it. He mentioned about the difficulties in LED’s business that’s when and why he started focused on AC’s and other ones. (* Problems with LED’s business: Orders were very erratic, customer retention rate is very low, to many players with way too much competitive pricing, growth visibility in terms of repeat orders is not there, no loyalty b/n brand owner and EMS player.)
Micro cap investing outcome is more like Binary type (0 or 1), Gray shades are always an embedded package in Micro caps you just can’t separate it. The things that we can control is entry price, allocation in pf, company or sector having huge tailwinds, tracking the volumes, any big investor or PE fund entry/exit, basic plant location check. On the number front, If Kacholia’s sir got convinced and took around 10% share in the company means we can assume few things:
1)Company is running real plants not an empty place.
2)Numbers might be true to some extent at least.
3)Promotor has some fire in the belly to ride the make in India theme (He might have failed earlier but that’s ok! what’s important is intent.
4) Company has applied for close to 100Cr for PLI and MH state scheme benefits. (Meaning company is paying taxes, GST and doing business, i don’t think Central gvt just issue PLI cash without some basic checks.)
All we can do is watch how the story will unfold. As the promoter mentioned company is aiming to do 1000cr revenue by FY25 or FY26 so just follow up on that number.
Disclaimer: same as above, entry priced is low.
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