Counter-thesis to above arguments
1). We have many businesses which are capable of growing 20-25% CAGR for next 3-5 years - where we do not have these issues -transparency, consistency and strong visibility for next 2-3 years.
Just how can anyone say what will happen over next 5-7 years with any certainty - when no one can establish what the actual capacities are, how much they are going to invest in Robotics, how much additional labour they will need, how they will address the labour scalability issues at a region like Kerala!!
2). With competitive position and industry structure being (very?) favourable - Kitex should not be ignored - the near term growth is most possibly there - especially as some big time expansions have been completed. But to deliver a verdict on scalability 5 -7 years down the line - without diligence but based on inconsistent and contradictory figures quoted by Management - is a big big leap of faith. All these may/should prohibit you from making big allocations, which we are usually able to do - in amny other high-conviction ideas.
3). As most would have realised seeing VP Portfolio Performance - the real opportunity cost lies - in not chasing every promising stock idea - but in not allocating enough to your high conviction ideas!! Just look back in all 4 of our 10-15 baggers, and see how much conviction was there in Mayur, Astral, Ajanta and Atul Auto.
4). There is no excuse for not persisting and establishing through our consistent efforts with Management - what does or does not add up - either way. And making allocations accordingly
Its a lazy response to accept things the way they are - to live with the consequences. Everything here may be positive, but let’s not ignore due process in firmly establishing that.