Valuation discussion

Hi all,
The results are not good with a net margin more than 2 times lower than it was pre covid ( 12,4 vs 29,4 %).Cannot be attributed to RAW materials, just higher cost structure and no one time sale of IP.
Revenue is up 10 % from last year but Xinclear which represent the bulk of it is up only 3,8% : Tourism is up at least 20% from last year so it probably means Xinclear lost market share.

Not debt but also no cash (0,3M AUD)

With the revenue growing 10% the inventories rose by 30% from an already elevated level as they represent 2+ years of sales. The management states that the shelf life of their products is going from 3 to 5 years (p2). So no need for inventory write downs now! I guess customers will be happy to buy a 4 year old Xinclear and in a few years let's bring up the shell life to 8 years ! What could be excused in the past as involuntary starts to look suspicious to say the least.

Margins are doubly inflated with fake economies of scale from overproduction and the very reasonable fear of inventory write downs.

Return on Equity is low at 5%.

So in my opinion a low/no growth (2019 vs 2023 Xinclear sales 11,6 vs 11,9), tiny, undiversified (86, 5 % in Xinclear), non cash generating, aggressive accounting, cash strapped and debt free company warrants a lower than average valuation.

A PE of 10-15 seems fair. So a share price of 27c to 40c. What's your opinion ?