I did some research on Evans Electric and found these problems
- 11Cr is in UTI arbitrage fund ( significant portion of reserves in balance sheet and this will not even grow at 6% , they could have put in at least index fund )
- FY23-24 around 5Cr Trade receivable with age less than 6months – highest in history I am doubtful about complete recover .
- 5Cr commission on sales is huge around 33% of top line ( no explaoination as to who takes this and is seen every year )
- There is no successor Planning ( current promoters are in 70s)
- Purchase can be made only in lots ( each lot is 500 stocks ) as its a BSE SME , low liquidity
- Growth seen in the near past in not promissing further growth, it could be one off thing.
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