Hi, I’m new here and still learning. I want to share few observations and questions. Please correct me if i made some error in observation and have misunderstanding about the business
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Business is highly commoditized as it depends on Crude price volatility and the management said they are able to pass on the price volatility which can reduce their turnover. What steps are being taken by the management to maintain the sustainable growth? Are they waiting for the demand for the economy of scale to play out?
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Since their focus is to shift from low margin to high margin product (XLPE compound) but it’s yet to be seen how this play out because from what I understand this industry is intensely competetive with local players (Shakun polymers etc) and global players and company has to keep it’s price competitive and restraining margin growth(yes, they sure can do capex in increasing utilisation ultimately improving realization but currently company isn’t doing that) so what business advantage they have apart from logistics wise which makes them winner in this industry segment?
Disc – Tracking and Learning
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