The reason for the high valuations could be the visibility of the revenue based on the huge orderbook of 23,800 Cr to be executed over the next decade, and this orderbook just keeps increasing every quarter. The current orderbook is 73% for EV segment. Also their return ratios (RoE and RoCE) are in 20s, higher than normal auto ancillaries.
Superior profitability, revenue visibility, increasing proportion of EV business could be the reasons market valuing the company at such high levels, in my opinion.
Disc: Taken tracking position
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