Market's view on Cyanconnode
Published on April 2024
- There is speculation that a joint venture (JV) might be in the works, likely involving a significant dilution for existing shareholders, possibly up to or over 50%.
- Concerns are raised about the company’s tendency to issue stock to institutions, leading to dilution for private investors.
- Recent company performances are deemed stellar, despite concerns about short-term share price volatility and liquidity.
- Doubts are expressed regarding the benefits of a JV, especially if it involves a partner that could lead to losing vendor agnostic status, which is considered a selling point.
- The possibility of raising capital through non-dilutive means is discussed, with hopes that management will avoid further dilution.
- There is a significant market for smart meters in India, with many tenders in process, signalling potential growth and expansion opportunities for companies in this sector.
- The re-establishment of ties with major players like Adani through partnerships and associations with companies like Esyasoft and Intellismart is seen as a strategic move that could open doors for future contracts and collaborations.