Agreed that the cost of aquisition is very low. They haven’t disclosed much about the seller so can’t tell much. Maybe they were distressed seller. Norlanka Manufacturing Limited is a sourcing partner for many global brands.
They have made another aquisiton of 24.99% Class A shares in Green Apparels Industries Limited. I was not able to confirm if Green Apparels is a sourcing company or a pure manufacturer.
I see that the sourcing part of PDS is the money making segment with best ROCE. Norlanka being a sourcing partner is a great value add for the company. If the same is true about Green Apparels, it would unlock immense value for the company.
Looks like PDS is using this industry slowdown as an opportunity to aquire stake in companies at a discounted valuation.
The key metric to track is the balance sheet as it has considerable amount of receivables, inventory and debt.
Disc: Not Invested, but might add.
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