For FY24, the topline grew by ~17% (good in my humble opinion). It did not translate into bottomline due to contraction in margins (various reasons mentioned in concall, pls have a look).
Now if the issue is why FY24 profit didn’t grow YoY and this single year performance is the only reason we should badmouth the promoters – I would personally refrain.
Very few companies (like Abbott) grow consistently and every single YoY – that is the beauty of running a business. Sometimes there will a black swan event (Covid) that will boost sales like never before, other times the top and bottom line will look inconsistent. Long term is what matters. Look at Divis Labs for example. Terrible growth in past 2-3 years – does it mean Mr Murli Divi is selling dreams?
Gufic grew topline by 21%CAGR and bottomline by 35% CAGR in 10 years! It has undertaken Indore capex that will help it double its sales in 3-4 years and improve margins.
Nice story to keep track of… maybe invest if you are a hopeful person like I am. Maybe not.
Disclaimer: Invested in Gufic. Exited Divis few months ago.
Cheers!
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