I have never understood the optimism on this counter. Technicals have to be supported by fundamentals. This is the 6 yr PAT numbers for Aksh
25.78 21.67 25.33 25.60 9.66 20.84
They have posted 20% lesser PAT this year than what they did in FY13. Why should this company have anything over a 10 P/E (i.e about 220-250 Cr Mcap) for such abysmal numbers?
If you see the balance sheet, it has grown like this
547.93 580.87 649.17 673.46 741.55 940.69
Balance sheet has nearly doubled even as profit has de-grown. How? Money that came in via debt and dilutions (about 300 Cr) is locked in CWIP and Receivables (about 400 Cr). I haven’t delved deeper into the ARs here so I don’t know what this CWIP is that it has stayed a WIP for over 5 years and still remains so!
I think company has raised debt and equity and has siphoned this money off and these balance sheet items of receivables (245 Cr) and CWIP (165 Cr) will get written off sometime in the future and the company would have pocketed a neat 200-300 Cr in 5 years while people following charts look at Cups, Handles and Triangles wondering why the price isn’t moving their way. At best I was expecting a pump-and-dump to materialise here and have been watching with curiosity.