Chalo to bata hi deta hu...
Going through RHP. And shows more than 44 cr receivable and above 6 cr receivable for more than 3 years.... Which is even increasing yearly.
Even peers have very low receivable compare to aelea...
It seems that almost all of the 6 cr+ 3 year old debt they have been carrying on books is from last year..
So, the aging is indeed 4 years. Doubt that is coming back.
Ideally they should have created provisions to write off bad debt like the 2 cr bad debt they have written off last year.
But this should be cleared from business.
This year they have to clear huge amount of bad debt from book which reflects in expense....
Expenses will drastically increase in half yearly after ipo result. Hence profitability decrease.. ultimately decrease in PAT margin...
I have seen this type of practice in many sme company in past.. Also there are too many small kaju processing units in surat. Many of them will going to default themself and many more will come new in this market...
Africa se aane wale RM ke prices bhi 50% se zyada badh gaye he Or election time pe kaju raw material import bhi bandh ho gaya tha. To june ka result upto may se kharab hi aayega.. processed kaaju ke bhav vendors ne raw material ke hisab se badha diye he. To abhi dhandha settle he..
Also current capacity is already fully utilised about 93%.. no scope of growth from current unit so promoter have raised fund for capex in existing facility and capacity becomes 140 MT/d from 40MT/d..
Also waste material processing will also starts by them after capex .. which generates additional revenue...
Good for very long term bet also for listing gain in short term befor half yearly result because I don't think result must be great or even good before total capex will done... Dydd...
Zerodha (Trading Account)
RHP
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