While the story is interesting, I am finding it tough to triangulate a few things. While everyone has spoken about the interesting bits, id like to play devils advocate here

1. The copmany seems to be focusing on too many things. Geospatial, Auto ERD primarily mechanical, AI through Megnxt and now data centres. How are these businesses related? One can make a remote link between geospitail and navigation for auto but thats more of a justiication than merit

2. As highlighted, how is it even possible to have negative working capital cycle here. This just doesnt add up. The nature of the business does not allow you to have -ve working capital. This primarily comes from payables which are at 700+ days. I dont see why any vendor would work with their customer if they pay in 2 years. even mangements explanation on call doesnt seem legit tbh.

3. 166 cr of receivables vs reported revenue of 250 cr. not a one off. it was 159 cr in 23 and 180 cr in FY 22 vs revenue of ~200-220 cr. High share from unbilled revenue.

4. Provision as a % of TR avg 15% over the past 3 years.

Tailwinds in the industry aside, how these materialise into economics is equally important, if not more. This is just based on a prelim look at financials. Will dig deeper in the notes.

They may be looking at cities which have a good population – which may choose to visit the park as a weekend/holiday destination. Normally when you visit a place you may not visit a regular theme park there which is also available in many other cities (Something unique like Disney is entirely different).
If the city has a good population, then in turns someone or other might choose to visit it once in a few months.

It is just a guess. Views welcome.

Disc: Invested recently in past 1 yr. Small part of pf

Specific events to be monitored for Kitex Garments. Some data are taken from Management AGM presentation.

• Turnover of INR 1,000 Crores in 2024-25 and life time high profit. (Q1 – 195, Q2 – 225, Q3 – 280, Q4 – 300)

• Telangana plant actual operation, management guidance Production starting from Dec’2024 – Warangal (Phase 1), Dec’2025 – Hyderabad (Phase 2)

• Merge Kitex Childrenswear Limited (KCL) Business with KGL, Revenue of INR 7500 Cr. upon full operational capacity for combined entity.

• Political development in Telangana and Kerala.

• Tracking by brokerages house – presently – None.

• FII / DII buy / sell Q to Q update.

Good quarterly result from Tips Music.