Basis my analysis, I don’t find anything wrong in the business fundamentals of this company. This business is certainly a volume game – higher the sales higher is the accrual to the bottom line.
If one considers the three main stakeholders of the business/ecosystem, it is the lounge operators who incur the maximum expenditure in terms of capex. For this ecosystem to survive and make meaningful gains for all parties, some amount of flexibility/cooperation shown by the player with the least capex is actually good in the long run. The current price level gives good opportunity to make an entry.
P.S. This is not a buy/sell recommendation but my opinion on the company/business.
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