the JV profitability concern is valid, though i am still not too worried on that front. last year q4 fy15 profitability was an aberration as it has twin benefit of low cost inventory with price hike being played out. in any case i never believed that could go on. Overall, i am quite happy with the results though the JV profitability needs some more clarity.
Furthermore, its important to note that the balance sheet has improved significantly. The short term borrowing has reduced dramatically, probably their working capital cycle has improved. Look at the swelled cash balance. its wonderful.
I am not worried about this company at all, so normally would not be worried till i see any red flags. The RoE, RoCE has improved significantly and as i keep on maintaining---an self-funded expansion is icing on the cake. The secular growth is unperturbed.
Any other red flag do you or anyone see ? let's discuss