My view –
Company has done backward integration by putting plant to manufacture required raw materials, prima-facie it seems strategically good decision.
but what they are going to manufacture are all commodity products, which will earn returns above cost of capital for few years and then below cost of capital for next few years.
I would have liked to see capex in existing products they manufacture instead of those commodity products.
Rational managements always try to earn better returns than existing or at least same returns, this decision of such a magnitude of investment seems completely irrational to me.
If someone has connections, please ask the exiting promoter (Dashrathbhai Patel) why he is exiting?
Not Invested
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