The market cap currently is about 675 Cr. If we notice the cash flow, it is handsome cash flow compared to previous 10 years.
Even quarterly revenue performance is not too bad if we compare it against the quarterly run-rate 2 years ago.
My observation is their employee cost seem to have doubled. Also, material cost also have spiked up compared to immediate previous quarters.
Another observation is the company seems to be doubling the gross block compared to the total gross block 2 years ago (adding the fixed asset+CWIP). I think the investment in Bio-gas plant are reflecting here.
Potentially, when the revenue starts to accrue from Bio-gas plant investment, the margins should improve and operating leverage should get better. I may be wrong in assuming there is going to be added revenue/reduction in cost due to 70 Cr. investment they are making.
It will be useful to attend the AGM for this company as they don’t to earning calls.
Disc-Invested
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