Till we get incremental sales at decent Return on invested capital it should be fine. Builder segment would be a good way to also create brand awareness .
Chirag had done a comparision to Toto in concall. Toto has premium product basket and to portray their products in likes of Toto brand awareness and positioning is important which they are doing.
I think it’s investor community who thinks more about maintaining margins.
I remember some one saying 22% of nothing v/s 16% of 100. What would you choose.
So if company can grow their sales with new segment by getting decent margins overall PAT will grow . Margins matter but without scale they make no sense.
If I were to choose low scale high margin v/s high scale and little low margins . Second one would give me more bottom-line growth and visibility .
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