The main reason for rise in revenue in Q4 and Q1 was increased (peak) realization with some volume growth. Now, that the commodity prices (raw materials) are cooling off, these realizations will reverse. To me, this seems like a classic case of peak valuation + peak margins, which is now correcting. Company has indicated in the AGM that the sustainable margins are 18-20%, which has been the case historically, so most probably for Q2FY23 we might see a significant margin drop along with drop in earnings and the market is already discounting that before the results. Since the stock float is low, the downward trajectory of the stock price will be steep, just like the upward movement was. Hopefully, this will bring the valuation down to saner levels, where long term investors can think of accumulating it.
D: Invested from lower levels.
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