Given that this is a turnaround story and the company only recently went profitable in March of last year (last 2 year, the company was loss making), P/E shouldn’t be the appropriate matrix.
I’ve outlined a few growth-related facts above in addition to the points below:
- Growth in topline accelerated to more than 18% in 2023-24 (12.5% in 2022-23) with improved margins resulting in PBT of Rs 5.24cr vs Loss of Rs 9.53cr.
- The reduction in long-term debt has resulted in decline of interest amount to Rs 2.9cr (in the March 24 quarter).
- Debt to equity ratio improved and company has cash balance of Rs 31cr
- The working capital cycle has improved.
Despite the fact that microcaps’ numbers are easy to manipulate. Nonetheless, given that Deloitte is the company’s auditor, the same may be more dependable and trustworthy.
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