Software product cos. have habit of acquiring research at inflated prices and Take Soln. is no different. Capital allocation has been poor in the past. They took debt to acquire assets which did not yield good enough results and hence debt never really came down. Someone compared FY11 and FY15 profits and it appears that they have stagnated. In reality, EBITDA has grown in line with sales but accelerating depreciation (and amortisation?) has kept PAT in check. I haven’t done study on why its recent acquisition should work.
Disc: No holdings
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