Assuming they debt fund this, 205Cr @ 10% , they will need to shell out 20Cr in interest costs. Co did a turnover of 24Cr in both FY24 and F23. Assuming at best it gives 20% net profit margin of ~5Cr. So it’s a negative ROI to begin with. In an year or so they spend another 50 odd crores and double the turnover to 50Cr, they might only get to 10 -15 Cr net profit, still doesn’t seem like they will make enough to even pay the interest on the loan.
Disclaimer: Not invested, researching.
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