HI,
To me what was little concerning was the low sales target that they set for themselves by keeping the base at 2020-21 level sales. From 2020-21 levels, the sales is already up by 45% in FY 22. So are we talking about another 35-40% growth (say ~700 cr) for next 4 years including FY 23? If that is the indeed the intention, the sale growth would be <10% PA or lower. It seems that they have been quite conservative in putting out this number. I believe that even this growth can still drive PAT growth of 15-18% + with the help of operating leverage etc. However this level of profit growth does not look very exciting and may not enable any further rerating and hence the stock may only be a compounder from hereon.
Regards,
Nikhil
Disc: Invested
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