Amounts to approx 200 crores (27 lac shares x 740), to put it in a financial context, this is equivalent to 1.5 years of profit.
Company has Net borrowed 130 crorres in FY 24 and same has been used for 126 cr of capex.
They have a spike in FY 24 cash in Balance sheet (they were prepared for this investment)
It seems like the company has financed this purchase operating profit.
Their intention seems very unclear at the moment. I am sure they have something in their mind about this further investment, could be a bullish view on Lloyds metals, but “investing” is not their primary business, hence I consider this as a negative point. Ideally they have enough money to fund huge greenfield capex but this industry has a limited TAM so that can be a problem here. To increase the TAM they will have to be an exporter. They are also not giving out any dividends or reducing their Debt which has doubled in last 5 years.
I wish the management did some concalls or improve their disclosures.
Note: Invested at lower levels
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