Middle East supply chain disruption
Freight costs via Red Sea have surged from $1,500-$1,700 to $7,500-$8,000 per container, impacting Middle East business. Management warned of potential 50% reduction in Middle East sales if disruption continues.
CNL / bear-case history
Track the concerns that keep returning.
Creative Newtech · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Rising raw material costs and consumer price sensitivity
Raw material costs (memory, storage, CPUs) have risen 30-40%, and while costs are passed on, consumers are starting to feel the heat, potentially reducing consumption.
Receivables days elevated at 21% of turnover
Trade receivables increased from ₹237.76 Cr to ₹565.11 Cr, now 21% of turnover vs 13.4% last year, partly due to extended credit in new businesses. Management expects normalization but it remains a risk.
Honeywell license renewal risk in March 2027
The Honeywell licensing agreement expires in March 2027. While management is confident of renewal, any delay or non-renewal could impact the brand business significantly.