2 things to add here to make this a case study for all:-
-
Greenpanel which is a player with much higher capacity and higher vap is getting a 15x Pe. Pe derating started when imports from South East Asia picked up.
-
When playing commodities:- understand where you are in the cycle. Once demand softened in Usa and Europe for Mdf. Import numbers for mdf in India started increasing as Freight normalized.
Rushil with a much lower added value mix might get a 10-12x pe when Greenpanel with a much higher value added gets 15x pe. Logical to think, at full utilisation assuming some margin contraction that is a mcap of 800-1000 crores.
Weighing risk reward, margins, where you are in the cycle, export/import data, and when supply comes ok stream (FY24)+ Only then going to technicals is what funda investors can learn from here.
| Subscribe To Our Free Newsletter |
