The only concern i have is on the KMP salaries (for Kundan & Parth) & Related Party Transitions. (as the DRHP says promoter has other companies in the same business - need a deeper dive)
Positives -
- Strong growth numbers from sales and profitability perspective.
- High Capex in progress
- Promoter shareholding ~70%
- Management succession in place (Kundan & Parth)
- Increased revenue contribution from Fine & Specialty Chemicals
- R&D expenses - ~5%
Negatives -
- Low cash generation 70% when compared with PAT - last 9 years
- Capex expenses are not met. Negative FCF & increase in debt (last 2 years)
- Promoter salary increasing disproportinaletluy ( for Kundan & Parth)
- Need to do deeper dive in Related party transactions
- Regular Equity dilution
Started a tracking position.
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