The major risk, i see as we discussed is two things, one new entrants in the Gujarat PEM scene, which suffers the profitability due to low pricing, however in order for that to play out the player had already put up the plant and have the necessary labours in place already.
Second one is execution risk, over stating and underachieving however I do believe it was 6 years ago in 2018, hopefully management had learned from their mistakes.
Requesting community members who are based out on gujarat to do scuttle-butt for any new entrants in the PEM scene, also we can ask the same to the management themselves in AGM meeting on Sep 21, 2024
But Major Postivies I see is
Competent Management reflects from various metrics and running efficient shop
Sectoral Tailwinds
mainly margin expansion possibility due to PEB is only 28% of their revenue so far so scope for improvement in the bottom line
Risk – reward is quite good
LT Foods scheduled to meet with Saurabh Mukherjea’s Marcellus Investment.
