Serving bottom of Pyramid while price is near All Time Highs!

Rocky_Chow Updated   
As per the management company is holding 1500 crores in liquid assets wit over 800 crores in bank balances..underowned by Institutions, promoter holding +70% and small retail holders make up 13% or little more than 99 lakh shares as per June SHP.

On paper company is in the pinkest of financal health with expansion in the Caplin Steriles division set to come on board H2 (site has got USFDA approval after struggling for many years) and the management has guided for a strong set of results in the last 2 quarters of this year. There are plans underfoot to enter US market with the front end set up in tier 2 areas...

All in all if one can ignore the paltry dividend payouts and the u turn in workng capital w.e.f FY2016 when from a -ve working cap co. it changed something in its working or booking of revenues/inventory etc. that made the working capital requirement comletel flip.. this has not gone down well with those tracking the company and it continues to be a question mark for some to invest here..the owner management also pays itself very less salaries relative to its size an profits...

However, all these are countered with the companys abitily to raise funds in 2019 to the tune of 30 million USD from Eight Roads Ventures and F-Prime Capital for its Caplin Steriles division for max conversion to approximately 24% of equity in Caplin Steriles..

Weighing the pros and cons one can decide the next course of action.. price is near all time highs and company is set to do better in H2 as per management commentary

Disclosure - Invested and biased
Trade closed: target reached


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