I had invested in Sealmatic from ~350 levels because of (a) what seems to be a decent market size, (b) promoter who is very experienced in the business, (c) transparency that they are not necessarily better than the big 3, but at par and what separates them is quick responsiveness and turnaround times that results in customer delight, and (d) sticky product offerings.
My concerns were (a) what seems to be a sub-par CFO, unable to clearly answer cash flow related queries on investor calls (b) the fact that they raised capital in IPO for working capital, and (c) negative cash flows – which are expected to turnaround in the “golden period” when maintenance revenues kick in from Fy 26-27 onwards.
Given the recent numbers, which are a little disappointing, surge in valuation, and incessant meaningless press releases, I have exited my position recently.
I will continue tracking the company to see if they are able to execute as planned and reinvest if they are, even if that means I would give up a portion of potential gains.
| Subscribe To Our Free Newsletter |
