Gautam ji, I hope you don’t mind, but I have a small request. If possible, could you kindly edit the above comment to remove ‘Lol’ from it? The reason is twofold:
- It comes across as mocking and/or dismissive.
- It might discourage others from sharing their thoughts on this topic (and this forum).
Again I am sure, this wasn’t your intention, hence just pointing out how it has come across.
Moreover, it’s not as if @Chandragupta ji has raised irrelevant points. I’ve been thinking about this as well, so there is at least one more person (i.e. me) which thinks that this is worth pondering.
The investment thesis for this company over the past two years (in my view at least) has been combination of 2 things : (a) improved operational performance through value-added products, & (b) debt reduction and capital reallocation through sale of overseas assets.
The second part is equally important for driving up PAT and ROCE by lowering interest costs and reducing working capital requirements. While management has mentioned that overseas assets are performing better, we (or at least I) don’t have concrete numbers on the OPMs for each their overseas geographies compared to their domestic business, to be able to fully understand the merit of their assertions.
Thank you!
Disc: Invested, 10%+ of portfolio at current levels.
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