The problem is neither mutual funds nor FII’s want to touch this stock because of the fear that asbestos is banned in all developed countries.
Also AAC blocks is a commodity with low entry barriers and no brand (read the MD & A in their AR) and is sold purely on L1.
Agree on the quality of management etc.and debt free company – but CK birla has little or no concern for shareholder value.Said all this, i had a decent run – I made 40% in about 15 months or so but I don’t see the PE re-rating anytime soon here. it will take 2-3 years of consistent performance for the market to get out of this,
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