A Growth Story Waiting for Cash Flow

Once the talk of the town, this SME is getting railed on the bourses ever since the last vestige of hype collided with business reality. With mostly OPM i.e Other people’s money fueling the company’s capacity & capability additions frenzy - existing shareholders have been diluted till kingdom come.
Return on capital employed - the ultimate hallmark of what makes a business good, bad or ugly - has declined consistently. However, numbers alone don’t tell the entire story.

Firstly, the business model has fundamentally shifted from a low capital - steel strapping (conversion) manufacturing business towards a higher working capital intensive ‘packaging contract’ strategy.