Few opinion:
- Your calculation of the
Profit Per Workforce
is off by a tenth. It cannot be in lakhs per deployed workforce. Please correct it. - OPM is wafer thin, so they hardly are making any money (it is in very low single digit), and if you see recent presentation - they have called out that high margin business has taken a hit. So naturally we can expect things to go south even further.
- In general, I am wary of business for which growth driver alone is the future. It signifies two things (a) lack or pricing power - which is indirectly shown by OPM (b) no well defined moat. So any hiccup either in execution or growth can easily lead to downturn in the business.
- If you see the financial statement, they have recorded negative tax for past 3 years. I am assuming that is because of the deferred tax. Now, what is the normalized value - we need to see over time.
Disc : Not invested.
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