Yes, that’s definitely not good. What I feel is that they are very new to con-calls, interacting with general public and are not very experienced to tackle each and every situation. Recent MMB board incident shows the same and in next con-call they mentioned that they don’t know how to react (they agreed it might be over reaction) and mentioned that they are also learning. In fact I would take that doing degree at this time in a positive way which might help in improving their management skills (though they might have not mentioned that way).
Though what I look at is their experience (almost 25 years of experience) and running the business started by themselves transforming from nowhere to a place where they have their reputation now. Sales increased from ~20cr 10 years ago to 200+cr now. What I like is more they are finding different applications for their product and continuously innovating and launching products at regular intervals. Though it might have not show immediate impact in revenue but will definitely show in future. In fact management has mentioned that they are going to produce one new product every quarter for next 6 quarters or so in one of the con-calls long back and I see that they are delivering it. For e.g. they have launched the coffee aroma bag, poultry cover etc. in recent quarters. They are currently researching in case by case basic but going forward I think they will be spending more money on R&D to design/innovate more products. Going forward the cash flows will definitely be improving as they are focusing on B2C through their krishirakshak & Jalasanchay divisions which the company can use to fund their R&D. I would definitely say they are focused, know what they are doing & learning along the way.
I think this could be the reason why even Hidden Champion Fund is acquiring good amount of stake even after they have mentioned that they want to hold only 5%. They are currently holding more than 7% stake.
Latest snippet from HCF brochure:
As I said in my above posts I am very new to stock markets, might have very fundamental mistakes in my analysis and ready to learn from others. Others, please feel free to update your views & guide me in right direction.