I didn’t like the way promoters are acting:
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MD and directors increased their remuneration by a large margins in the year when the company didn’t perform as per expectations. Ideally they should be cutting down on expenses but they not only increased the remuneration for multiple directors but almost doubled it. Decreased the variable part too. They could have decided to drawn less salaries and pass on more money into profits but they didn’t.
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They mentioned a 3-Tier risk mitigation strategy. They had been working with ISRO for 40+ yrs and Bloom for 13+yrs. How come they were not able to anticipate delays/deferred orders and give the guidance accordingly. Having worked with defense sector for over a decade, everyone adds multiple delays in the purchase process. This lead to a major fall in revenues than what was anticipated. Promoters have been giving overly optimistic guidance.
Electrolyser business can do wonders in the long run, but for me, its wait and watch with MTAR, levels around 900rs per share would be a good entry point (hopefully it will get there in next 1 year).
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