Somethings are worrying on this company like.
- Too much client concentration risk-ONGC
2. Business with PSU generally increases late receivables. Trade receivables-in 2016 it is 56 cr vs 2015 it was 26 cr .
Generally PSU does not follow Payment terms and conditions, Some times it may be forced to write off receivables too.
- Capital Intensive business, low utilization of equipment leads to higher losses.
4.D/E is increasing(doubled in this year) which is uncomfortable.
Please free feel to comment on my observations.
Disclaimer : Invested and 7% of PF.