I have started some high level analysis of the company once @harsh.beria93 started sharing the updates. But, I am still not feeling confidence with the management to scale the operation like they usually suggest in all forums.
Below are some of points which making me cautious to invest:
- Management is not having any real fire in belly to scale the operations.
- Management keep guiding some aggressive numbers to achieve in the each year but they never able to even close to those numbers.
- Management was expecting to cross 600 crore revenue in FY23 and still not able to meet the target.
- Management tried to list the company in NSE for last 3-4 year but now given up that goal. Recently, they gave cost factor as the reason which I don’t think true as they should have already knowing before planning to list in NSE. Even giving up mentality is not going to be taken positive from investing community.
- We usually see 3rd party transactions mainly with S Kant Healthcare(sister company).
- Management stopped having con-calls after facing stuff questions from the investor community.
- There will be more pressure to the margin till more export in different region materializes.
If anyone planning to invest in the company, please go through at least couple of con-calls to really know more about the management and style of working.
I still feel current valuation which company is trading may not have much steam till management able to meet walk the talk. Hoping management to have more con-calls so that MF houses start tracking this counters to really see value in this counter.
Happy Investing,
Karthik
Disclosure: Not having any exposure to this counter. Started tracking this due to Pharma upcycles and lower PE.
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