I agree with your points. I’ll also share my understanding. Please correct me if I’m wrong
- Yes, It’s in commodity business but especially Lead , Aluminium recycling but this price movement revolves around several factors such as Whole EV Hype and investors euphoria around it, Goverment’s circular economy push, Fast expansion to cater future demand, Company’s Hedging Mechanism (MCX contract), VAP business, Good ROE, ROCE, ROA, Dividend Rewards etc made this company attractive investment choice for every participants especially in this Bull rally where there’s lot of liquidity.
- While reviewing this company, I observed they have taken debt to fund their expansion which is fine, fast growing companies require capital to grow but this internal accural things also didn’t sit right with me which makes me comes to your 3rd point. Company does not generate that much cash flow and 6/12 years have -ve FCF. How this internal accural thing going to work i’m not sure.
Disc: Have Small position