Emmbi Industries - Boring name. boring business

(Saravanan B) #102

I agree to your point. I am concern is centering on the price that already factors in future growth. There are no answers for the questions that we are asking.

For instance, if we are telling it a niche, why we don’t see the variables reflecting in margins?

  • Increasing Debt

  • Mediocre working capital management

  • Increasing capex

  • Operating cash flows not sufficient to fund its growth due to which they rely heavily on debt

  • High interest paid towards the debt

  • High management remuneration

  • Inventory days are high, cash conversion cycle is also high provided they get a portion of their revenue through exports

What’s the excitement about? What’s the niche in a global level? I am just trying to understand.

What would make hidden champions to take a stake in such a company? I believe people who had invested in this company for a long time could come up with an answer.

(Saravanan B) #103

FPIs exited. Smart foreign investors. Without getting unemotional, they exited on a profit. Fundamentals will always win.

(rkothuri) #104

That’s a very little amount that other FPIs hold. They have entered in Q3 and exited in Q4. I am not sure what have made them to exit in just 1 quarter. At the same time I see HCF increased the stake to 7.19% from 7.16%. Unless fundamentals deteriorate I don’t consider these FIIs exit as a case to worry. Waiting for Q4 results to take further actions/analysis.

(Saravanan B) #105

“When the tide turns around, we will know who is swimming naked.” ~ Warren Buffet.