While we should wait for clarity on mgmt thought process behind Nuclear biz sell off – a possible explanation lies in AR
In some ways Co has not been super aggressive in calls/ AGM for Nuclear part, and if they are seeing good opportunities in core biz (Industrial / irrigation/ flow sols) – it may make sense to divest niche part of biz which requires large investments to grow(as called out in AR). It can be read both ways but seems a sensible move if investments ROI is healthier in core segments.
Any investment in EU focused biz (Nuclear reactor) requires local capacities ramp up and is likely a big ticket(in context of WPIL modest size bal sheet) one given bigger competition in this industry. Below commentary also indicates growth in Group Atruia in Fy 23 was primarily from non nuclear areas and Nuclear is a longer gestation game.
As @sharemarketgen_ called out valuations are quite good considering EU context, need to see what management has to say about it and how do they plan to utilize proceeds of nearly 400 cr+ – for sure helps keep bal sheet very healthy + core biz aggression opportunity.
D – invested
| Subscribe To Our Free Newsletter |
