Not comfortable with growing debt and higher interest. Most of operating profits is being lost in increased interest payment. Net profit margin in the range of about 2 % is quite less.
Not comfortable holding it, even if top line and OPM is increasing, since most of additional benefit is lost in interest payment.
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Further, there is NIL holding by Mutual Funds and FIIs, that further reduces confidence.
Disc: plan to sell all my holdings.
I agree, with the revenue growing 75% but the bottomline still peanuts.
Seems like a classic egg and omlette situation. Without debt they canāt grow. And breaking eggs isnāt always easy. Capex will make or break this company with strong tailwinds.
I am still waiting for the concall transcript but i am not inclined to take any action as of now (2% of portfolio invested). I would definitely want to understand the reason for such high tax and what tax rate shall we expect moving forward. What i did like is that company still generated good Operating cash flow of about 199 crores. This makes the company valued at 20 times operating cash flow. I felt the revenue growth and cash flow figures are decent, rest letās see once we have the concall transcript.
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Management have guided 25% cagr revenue growth in 2 year
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They paid 51.5 Cr. of interest in Q4 FY24 for outstanding debt of 577 Cr., When I calculate interest on annual basis : 51.5 x4 = 206 CR. ,and when I calculate the rate of interest on debt of 577 CR : 206/577 x100 = 35.70% rate of interest.
35.70% rate of interest is extremely high rate of interest. AM I missing something ?
Please Guide 
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You should also look at trade payables as some companies might classify them as debt which triggers interest. Itās a common practice.
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Intrest on anual basis is 154 cr.
Intrest cost and tax rate dragged the profit margin. Although managment guided to reduce tax rate to 25%.
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Hello,
In the below tracker, I have started tracking important company goals for Skipper.These goals are referred to as āmonitorablesā in the tracker.I will update this document regularly to reflect the current status of these goals.
Hereās a snapshot of what the tracker includes:
- Company Ticker: For identifying the company
- Monitorable Description: Description of the goal or metric being tracked
- Date of Announcement: When the monitorable was announced
- Deadline: Target date for achieving the monitorable
- Status: Current progress (e.g., Not Fulfilled, Pending)
- Verification Link: A link to see where we got the information about the goal.
I hope this information makes it easier to observe how well companies are progressing towards their stated goals.
Screenshot of the tracker below:
Full tracker attached below:
Tracking Company Monitorables-7.xlsx (125.8 KB)
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