Ignoring the obvious red flags present, such as, aggressive accounting practices, increasing receivables, headwinds in the agrochemical industry, depleting margins, recent IT raids, I would still like to look at certain positives. All views and opinions welcome.
- Management confidence in achieving 20% Ebitda margins
- Continuous launch of new products that are expected to contribute to margins in H2FY24
- Plans to explore opportunities in SE Asia, Middle East and Africa
- Acquisition of Kashmir Chemicals (to meet growing demand)
- 20 years patent for its subsidiary
- Capex for backward integration
Also, reading the concall transcript has given me a little bit of confidence in the management and a belief that the company is possibly headed on the right path.
The stock is currently in a free fall and my thesis may be wrong but I feel the business model is strong and fundamentals are expected to improve next quarter or maybe 6 months onwards.
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