That’s due to high receivables and working capital. Since they’re in expansion mode that’s understandable. They are entering newer states and debtor days and receivables on higher side is natural. Historically there have been very high debtor days which I can see is declining since 4-5 FY. Since they are second largest player in White glue segment, the gap between Fevicol (1st) & Euro 7000 (2nd) being wide, they have huge scope and market to grow.
Huge TAM open for them!
Disc – Invested and optismistic about the sector and company.
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