Hi Everyone ,
Went through the red flag’s tweet shared by @StonePitbull , really helpful indeed for anti-thesis pointers. But as the stock is driving into deep pessimism(CMP – 895) and Stage 4 . Felt like diving deeper and saw some positive pointer’s in place too . Do your own due diligence to see what outweighs more : But I have summarised it in this tweet – https://twitter.com/Lakshayy_99/status/1660518460932386816?s=20
Putting it on this thread too :
The fall in the profits have been tied to the fact because of one of the plant enhancement due to which there fixed cost causes an impact , with additional employees leading to further impact on EBITDA
Reasoning as to why the profit has taken a toll this quarter , Additionally 56Cr one off expense because of a US company defaulting as it filed for bankruptcy (Highlighted below)
Also if you see point 5 , the acquisition of Cenexi(1000 Cr ) . Whose payment would be taken care from it’s cash equivalents of 2770 Crs ( It’s revenue of 1600 Cr on a yearly basis would be added considering the current euro price ) .
So in future can see top-line inching north of 6000 Crs.
Please correct if I am wrong somewhere , and would appreciate other investor’s view on this .
Disc : Studying and tracking , no recommendation !
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