I think management is trying to play ‘better safe than sorry’ here. From my understanding, they started out with 20-25% growth guidance and at one point, they said they may beat it and touch 50% as well.
Due to uncertainity in the last year, management has learned in this industry, things may not be as certain as they seem, so they are playing safe. This is good for the investors as well. I have held stocks where management used to give shiny projections only to later miss it by a huge mark. Markets punish such companies strongly.
To be honest, I am more concerned about the receivables than earnings growth in this industry. I hope what management mentioned in this concall that they are getting back on track regarding this is true and we see improvement on this front in coming quarters. This is something I will track like a hawk and take further decision.
Disc: same as earlier
Subscribe To Our Free Newsletter |