Current Affairs

 In my last post, I had pointed out some negative/positive points about the company. Currently, the company seems to be in a Capex mode as mentioned in my last post. The Q2FY24 results of the company was declared a few days ago. Below is the snapshot of the same. (Estimates of FY24 are assuming that the growth numbers in H1 FY24 will continue in H2FY24 and margins will remain on similar levels). The QOQ situation has been better but the same cannot be said for YOY. There are for more issues seen from the balance sheet of the company. Days of receivables increased from 61 days in 2014 to 88 days in 2023. Working Capital days also increased from 40 in 2014 to 86 in 2023. Reserves in 2014 were 277 crores which increased to 3918 crores in 2023. LT borrowings have also increased from 188 crores to 761 crores in the same period. ST borrowings have also increased from 312 crores to 996 crores in the same period. Based on this an additional question arises that why are they increasing debt and

 In the recent Q1 FY24 Results season, there were many companies that gave a bad result. One of them was Laurus Labs. Below is a snapshot of the result. When the result was announced, the price soared but then it again corrected. It made a high of Rs. 418 and corrected until Rs. 380. The price currently is trading near that price that is Rs. 398. So, I just thought of giving a look at the fundamentals of the companies starting with the Balance sheet. I saw that Long term borrowings have increased from 400 crores in March, 2021 to 761 crores in March, 2023. Short term borrowings have increased from 886 crores in March, 2021 to 996 crores in March, 2023. Sundry Debtors have also been increasing from 1300 crores in March, 2021 to 1580 crores in March, 2023. Inventories have also been increasing from 1575 crores in March, 2021 to 1685 crores in March, 2023. Looking at the P&L, revenue has been very consistently increasing during the last 10 years but margins are not being maintaine