Krsnaa Diagnostics - what is the diagnosis?

I had raised this point on May 24 winning order is not key esp in GOVT .

Govt as customer is triple edged sword

  1. Corruption
  2. Receivables
  3. Unfair (one sided) terms of contracts

Krsnaa Diagnostic raced up on order receipt and now order cancellation -

Taking Legal course may upset its other Quasi Govt customers . No one likes to deal with company that files cases against you …

Cases like this takes long to time to resolve even after favourable judgement . There are many such examples when company has won thousand go crores as compensation from high court , but they case then get stuck at SC for 6 - 7 years … … in meantime company may turn near bankrupt

If you are buying any company who has GOVT as primary customer pay less than 5 times OCF ( last 5 years Avg OCF is better metric )

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