Hello @manishinlucknow: Sure, please go through the details because my personal views says that this company should be researched in detail and we need to know everything about the company’s Business operations, Financials all—–the reason I say it is the business has very high prospect with the huge demand of eco friendly packaging solutions using technical textiles—and this company is providing the innovative solutions in this area and that is the primary reason more new clients bases have been added and such a growth is being shown on revenue front——today company’s revenue is around 1000cr. which is very good——EBIDTA is also good at around 170 cr….but huge interest cost(around 50-60cr. yearly which is more than NP yearly) is eating all the profit—–and also the operational cost is high but this will be reduced gradually as company has invested a lot to install the SAP(Systems, Applications & Products for Data processing—its a top ERP surpassing Oracle and the leader in ERP area—I know SAP very well and all of my IT Career of 6 years , I have worked in SAP only, still continues)—and this SAP installation and customization is quite costly so it will hamper the NP for some years BUT once the data size of the company increases(which is the case with Neo with 1000cr. revenue and big operations related data is being generated everyday) then this SAP will bring fruits with more optimization in the overall supply chain(Procure raw material to sale products) and speeding up the whole process with SAP’s high speed technology——so SAP will improve the operational performance in a big way and that should improve the OPM further which will be very good——–
All in all what I can say is that the company’s business operation and future potential is HUGE(but movement of stock price is not still sure because of Debt, low NP etc.) , so we should closely monitor this company and if these things improve in coming 2-3 quarters then it will definitely be a good investing idea.
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