How do you tackle the problem of businesses with high valns and almost non existent cash flows ? Azad for eg. has generated cumulatively 9 cr of cash flow vs 280 cr of cumulative ebitda. This is not just related to Azad, I am struggling at the same issue. There are high chances of dilution and leveraging… I am invested in zaggle which has the same issue but I am comfortable cause the scalability may not be a challenge as it’s a saas type biz . But when it comes to capital intensive cos with cash flow issues where orders can get delayed, capacities can take time to ramp up, how do you deal with that? Is excess debt on bs/dilution an exit trigger in these cases ? Thanks for sharing your pf and thesis behind your stocks.
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