Thanks for the excellent note !
Just a few concerns that I want to highlight:
- High debtors more than 6 months
- Foreign exchange fluctuation gain of 98 Cr (consol) in Fy15 - not sure how sustainable it is
- Sugar business in subsidiary which is cyclical and unpredictable
- Very little or no information shared on order book thus reducing the visibility on future prospects
- HIgh KMP remuneration of ~25 Cr
- Streched trade payables
- 300 Cr of sugar in finished goods inventory (on annual sugar sale of 300 Cr) - represents a considerable commodity price risk
- Lease rent receipts of 27 Cr driving standalone profit
- While ~600 Cr of cash is great significant other income and profit on sale of investment is driving profitability
Overall while I like the business and the fact that they have grown significantly over last decade and generated cash I am not completely comfortable because of complete lack of communication on basic info such as order book, sugar business and few elements on BS highlighted above.