Thanks @Akash07 for wearing the hat of contributor.
Optically, I liked what Gensol is doing 1. EV manufacturing 2. EV Leasing (Arbitrage over fuel costs)
I found few concerns.
- I checked with few folks in Industry on Solar EPC Margins. On ground folks told me that getting margins above 10% will be difficult unless they signed agreements few years back. Getting contracts is no problem. Quality of cashflow is one to look for.
- Promoter pledge is at 41.75% (visible in stock edge app). Promoter has higher incentive to keep the stock in the positive. No knowns funds have taken positions. Usually that is a signal on someone doing homework on promoters.
- Major public individual investors holding 15% exited while the company is ramping up. Vakrangee had a similar trend.
- Matrix Gas (Same promoter) also had a sudden revenue spike in most recent year. Looked like a company trying to cash in on SME boom.
I don’t know if time in market has softened me and made me more cautious.
Discl: No holdings.