Going through the AR, found this in the MD&A.
I think a few things are going to happen based on my observation:
- A stock split is highly likely in the short term due to the sheer absolute price of the stock
- More debt could by raised once the cash flow from the 420 cr. Capex starts flowing in and company is assured of its debt payoff
- Interest payment and D/E will rise leading to more debate/discussion on its justification for high valuation
- Further equity dilution with fund raising either via Preferential Allotment/FPO/Rights Issue is on the cards over next 12 months
- Sales will continue to hold with industry CAGR upto 2029 is expected to be ~25%.
Possible timeline this round of Capex:
September 11th – Vote for funding
October Mid – Funds received/ Order Placed
November End – New Hardware Received (based on 4-6 weeks wait time for new hardware as per concal)
December End – Installation complete, brought new H/W online
Jan-March – Revenue generation from new capex
Based on this we can expect no more actual funding happening (discussion/targets may be talked about/set) this year as the cash flow will happen Q4.
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