The more I dig here, the more skeletons I find out
AMSC has decent WTG technology but by no stretch of imagination can it be called a market leader. Infact, regen for eg., has gearless technology (again franchised out). long term performance of AMSC turbines in India is yet to be tested out.
the group actually sold down their stake. when i looked at the pre-IPO financials, I actually thought for a moment if this was a candidate restructuring program - the numbers looked that bad. Sans the IPO, the company would be in CDR now.
Lowering promoter holding, increasing leverage, negative cash flows, stretched receivables - now where have we heard that before - infra/ real estate in 2007, suzlon in 2009/10.
I would not put my money into a business that cannot generate positive operating cash flows, leave alone free cash flow - remember that in this sector 40% of sales aas receivables is the norm, this company has 50% - and that 10% is the difference in margin between it and its peers - Just saying, red flags galore in this - if you look through it from the view of a cash flow prism.