I just started researching about this company. Hindware is a great brand. No doubt. I do think that management will realise about diworsification sooner or later. But what really dampens my enthusiasm is their working capital management. Unsustainable quick ratio, high debt. Are they using long term borrowings for working capital. Can they pay principal when they have to? Will cash flows be good enough at that time ? etc. I understand that if everything is fine such brands won’t be at such low valuations(p/s). Feel free to counter. Thank you.
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