One risk/drawback of Deep Industries business model is that they have to constantly pour capital into the business for growth. They have to do capex for new equipments for new contracts. This is good when business environment and end user demand is showing growth but if demand slows down after a few years, then they’re saddled with idle equipment. Also, continuous capex for growth means FCF (last 2 years negative FCF) and ROCE will remain lower (Though ROCE is improving now)
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