FLUX - Electrovaya: Decent Growth Prospects But Too Many Red Flags

2024-01-22 10:58:24 ET

Summary

• Following years of overpromising and underdelivering, Electrovaya's growth in FY2023 largely hit management's ambitious projections.
• The company expects to grow revenues by up to 70% this year, with positive adjusted EBITDA and cash flow from operations.
• However, the company's planned expansion into the U.S. is behind plan as required financing has not yet been secured.
• The issue in combination with Electrovaya's weak financial condition required a going concern warning in the company's annual report.
• While the company's growth prospects look decent, Electrovaya's weak financial condition, poor corporate governance, and a history of less-than-stellar execution are keeping me sidelined at this point.

Electrovaya Inc. ( ELVA ) or "Electrovaya" is an aspiring Canadian developer and manufacturer of lithium-ion battery systems with a focus on the material handling markets. In addition, the company is expanding into on-road applications and stationary energy storage.

Electrovaya is also developing a solid state battery, however any potential commercialization is still years away....

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