Some things to be considered before buying Goodricke:
1.Production is on the decline steadily.
2.Management doesnt reply to good questions asked at the AGM( I have attended their last 2 AGMs).
3.Being a MNC affiliate, they arent too keen on expansion, and all talk about expansion seems to be just a lip-service.
4.The social costs at the gardens are more than the average norm.
But the advantages surely outweigh the negatives:
1.Price to book value multiple is below what it has been available at 'normally'.(My last acquisition price at 38-39 was the place where BV was almost to the Price, almost about 15-17 months back)
2.Earnings multiple is also below what it trades at, 'normally'.
3.Balance Sheet is in the best shape than what I have seen in the last 7 years.
4.Because of Point#3, expect the borrowings cost to be significantly lower than last year.
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