As someone who has been tracking this industry (and stock) for a while, let me share what I think is the problem with this industry. This is a commodity and cyclical business meaning the margins are thin and unpredictable. Basmati rice requires ageing which means the working capital cycle is terrible (like one year). It is very hard to brand this business as after all it is just rice packaged and sold and on top branded basmati rice is penalised with additional tax. It is very hard to scale the business as basmati rice is GI tagged and produced only in limited geography. There are difficulties in getting back money from customers in Middle East (Iran). This is a very hard industry where most players get bankrupt ( just look what happened to some of the older famous basmati rice brands). This is a mature industry with limited growth opportunities. Probably the only way to make money here is to buy at the lower end of the cycle and sell high.
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