So the company in reference is Gravita.
And I agree that rents isn’t a big deal per se. But some things raised my concerns. For instance rent going up from 12 to 27 lakhs in a single year, their plant repair cost being 50% of the PAT.
Though I know this is a subjective topic and I also agree with what @barathmukhi said about management not being robots. Above all they are in the game to make money for their own good. But most aspects of the company and their capital allocation decisions since 2011 have been fantastic. So why would they risk everything for rent, repair fraud or remuneration.
Ofcourse with that said, I am still learning and this may be a wild swing for no reason. Appreciate your answers, will study more and try to make sense of the situation.
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