Although the receivables are increasing YoY (almost 27% of total assets and this percentage has increased YoY), the cash conversion cycle is -401 until March 2024. This is because the payables have increased more rapidly. As a result, CFO is healthy with CFO/PAT more than 100% and CFO/EBITDA more than 73%. One thing that caught my attention is the zero promoter holding in the company (around 6% shares are held by Rajiv Kaul as a super investor). I am trying to find the reason behind the promoters selling their stake.
PS : Studying the company. Was keen on buying it but now a bit reluctant as better opportunities might exist in the market.
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