The company seems to be truly innovative in terms of product design and applications. They have lot of patents as per their latest concall. This concall and presentation provides lot of insights on the innovation that the company is doing.
Such a company with distinguished products should command some pricing power and favorable trade terms. The trade terms are clearly not in line with that.
The debtor days have almost doubled to 140 days from 68 days. This is the highest it has ever been. The entire amount (almost) of 85 crs of debtors pertain to Home and Retail division whereas management alluded it to Infra division in the concall. This seems to be a key monitorable as this amount is 75% of the sales of both the divisions for the last 2 quarters. The question is if there is anything more to read into this. CFO/Op. Profit = ~9% for last 7 years.
The company will require additional debt / fund raise to achieve it’s desired growth of 30% if debtor days stay elevated.
Subscribe To Our Free Newsletter |