I have sold Cadsys some time ago at around 200-210 range before the run up and dump face by the share.
The cashflow was disastrous from the start but PL was very good at that time (based on H1 FY 24 results). There is only one positive news posted by company somewhere in April regarding a hiring.
Press Release April 9th 2024 (nseindia.com)
The person is appointed as Independent Board member, so what would be actual impact I cannot quantify.
The loss of revenue of 8 million USD is a sad outcome for the company and considering their unsecured borrowings at high interest rates in USD, short term looks bleak. They have not written off the receivables, so it stays a question whether the management is willing to write off the receivables or create a reserve or do nothing and the auditor’s response for the same.
Meanwhile in the Annual Report the MD states that a weak and challenging Financial Year 2024-25 is anticipated.
Current valuations look cheap but considering the loss of revenue and a lack of cash flow generation makes the case very risky.
| Subscribe To Our Free Newsletter |
