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While the company boasts a unique positioning in sustainable infrastructure and has posted a sharp 157% YoY revenue growth, the devil lies in the details:
π» Here's Why You Should Avoid This βToo-Good-To-Be-Trueβ Stock:
β Overreliance on a nascent business segment β Over 50% of its FY24 revenues come from a niche βsustainable theme parkβ vertical, which is barely developed in India and lacks a long-term industry tailwind.
β Dramatically stretched valuation β Trades at a P/E of > 50x and P/BV of 13x, far above industry averages. Even top-tier peers trade cheaper.
β Geographical dependency β Over 75% of revenue is concentrated in just one region (North India), exposing it to regional risk and policy uncertainty.
β Working capital intensive model β Rising receivables and blocked capital have already resulted in negative cash flows, despite profitability on paper.
β New growth narrative feels like a pivot β The legacy wastewater treatment segment is declining, and the company appears to be shifting focus to an unproven theme to keep growth expectations alive.
β Valuation mismatch β High projected growth doesnβt align with actual fundamentals; scaling challenges are underestimated.
π« This is NOT your multibagger.
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