if industrial shift didn’t happen, business will still continue to post profits on a similar pattern on QoQ basis and EPS could still manage to be around 1.5 but the huge problem would be the cash flows… that’s a huge challenge this company is facing. I am not a financial guy and just an engineer, so I’d like to keep things simple… cash flow is a huge problem here and I don’t see it improving unless some measures are taken by govt to enforce usage of environment friendly heat stabilizers, as that would definitely bring down the no of debtor days and increase the cash flows from operations. Right now, MTM is a choice and vikas has to offer it on higher credit to sell it product, which does help in the topline and bottomline but isn’t much reflected into cash-flows… it can be imported from china at 5-7% cheaper prices… so if anti-dumping duty comes into play. that can also hugely benefit the business of vikas eco. and off course the company is looking to expand in foreign markets, securing huge orders from developed markets would stabilize the business. It’s a mid risk and high investment opportunity as per me.
disc : i had mentioned before, I am already invested in it and had accumulated at every dip… so my views may be biased.