Agreed on the promoter/MD. In such small caps, it is often the bet on the promoter. There seems to sufficient demand for multiple players to grow at least for the next few years.
One thing to watch for – They have been selling mostly lower end machines till now, which I assmue majority is to SME clients. This is allowing them to demand advance and manage WC very efficiently. With government/defense clients and larget private clients (as they move up the value chain), I think the WC will be impacted. Also they may nee debt for expansion. Need to keep a close eye on balance sheet, which is in very good shape today.
Going by the number of analyst meeting they are doing, looks like there is a wider interest as well.
Another point to be aware of is that this scrip lacks liquidity. One may need patience to buy as well to sell.
I have taken an approach of staggered buying – bought some before Q3 results, after confirming the business performance and outlook in Q3 added some more. After Q4, I plan to add another 25% to the position to reach the target allocation.
disc – invested from lower levels
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