Good numbers. The only problem I see is the lumpiness in their cash collection which can be noticed in uneven and erratic inventory turnover and cash conversion cycles. Reason for that is not surprising given that they work with government entities and their small scale of operations puts them vulnerable to delay in payments, thus impacting financials. Unlike Tatas or Adanis they won’t have leverage or influence on procurement departments of government entities.
Although they claim to have an order book of 2000+ crores, the revenue streams will always be unpredictable as they have been in the past. But short term narrative and earnings look good and one can expect further rally in the stock.
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