Ilpra is an Italian based company specialized in packaging machine in the food industry. I was attracted by the top line growth and the low valuation and this is the result of my analysis.
I looked at them recently. What ultimately made me pass on them was their decisions continue operating in Russia. It’s only 2% of their revenues, but they talk about the difficulties of keeping it running the significant risk with supplying the branch. It just seems like bad allocation to not sell or dissolve it
Yeah I agree, but it just made me wonder if they were making the best decisions for the business. I think there’s a lot of moral debates on what to do about maintaining business in Russia, and with other companies leaving, it’s hard to justify staying. This wasn’t the only reason I decided to pass. I just think it gets overlooked since it’s such a small part of the business. Still, their acquisitions look really attractive and I think they’ll do just fine. Just not for me right now
I looked at them recently. What ultimately made me pass on them was their decisions continue operating in Russia. It’s only 2% of their revenues, but they talk about the difficulties of keeping it running the significant risk with supplying the branch. It just seems like bad allocation to not sell or dissolve it
Mhmm if this is just 2% should this not be viewed as non significant ? I mean 2% impact should not impact your decision to invest no?
Yeah I agree, but it just made me wonder if they were making the best decisions for the business. I think there’s a lot of moral debates on what to do about maintaining business in Russia, and with other companies leaving, it’s hard to justify staying. This wasn’t the only reason I decided to pass. I just think it gets overlooked since it’s such a small part of the business. Still, their acquisitions look really attractive and I think they’ll do just fine. Just not for me right now