What you said is true. They had to cut the revenues guidance sharply as their biggest customer (Bloom Enegy) is transitioning new variant of FC assembly). I still believe that they can achieve 30% CAGR revenue growth over FY23-28.
It’s a negative sign that they’ve cut down the guidance. But in past years (atleast twice), they have revised their guidance upwards and achieved it (In FY23, they commited to 45-50 % growth , later revised it to 80% and achieved it). So, the management has not always disappoint on the guidance, but they’ve over performed.
But only in future we’ll know whether they can walk the talk or not (Revenue target of 3000cr in FY28). It’s difficult to predict what will happen in future, but I believe that their guidance is supported by some facts and discussions with existing and prospective customers. Anyways, since the co is trading at higher valuation, I plan to manage my risk by position sizing. I am okay to go wrong on some positions as I will reduce my risk via diversification.
Thanks you
Praveen
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