Hi Rajat, @armchairinvest_
Just a few questions I was pondering over - thought I could get your valuable advice on the same.
A) YOY (September quarter to September quarter), the standalone entity has grown its top line by 33% approximately (i.e. 285CRS to 380CRS) which is no mean feat and upon speaking to the management they are confident of this run rate (they are guaranteeing 20% + but are confident of 30% + growth in top line) for the next 3-4 years for pennar industries on standalone. - Do you feel this is doable or they might falter somewhere down the line? They are committing that go one year forward and the top line for the standalone entity should be in the range of 470-500CRS. I just can’t figure it out but this growth rate is quite impeccable.
B) After many quarters they have suddenly turned very positive for the PEBS business. Speaking to them multiple times in the past they were always of the view that PEBS will be flat for quite some time but upon speaking to them a week back they have suddenly turned very positive. Do you have any idea what has suddenly changed and where is this bullishness coming from? They are even confident of hitting 1000CRS topline in 2, 2.5 Years.
C) Thirdly, they want to exit their solar business. Can they just decide to exit a business vertical like that. Aren’t there some costs associated with setting that business vertical up or can they just slowly shift and streamline that capacity towards some other vertical like railways or PEBS like they are mentioning? What are your thoughts?
D) Regarding Land Monetization process – They have started the process for the patancheru plant but they have clearly said don’t expect anything for the next 2 years?.