one concern I have is inordinate amount of debt – Rs. 175 Cr. in total as per AR – the company can barely service its interest on the loan with the present cash flows – interest cover is barely 1.5. In such a turbulent global environment, having 150 days receivables with forex volatility and such debt and pledged shares amplifies the risks
I really like the path the company is taking but at CMP, I think a slight dip in sales can be catastrophic and can induce pledged share selling.
Request you to think over it.
| Subscribe To Our Free Newsletter |
