Markets are not rational my friend, and my personal pov 20-30% fall wasn’t okay because a commodity company can’t command 25-30PE and when derating starts in such scenarios the fall is really heavy. I was waiting for it to come near 3600 crores mcap for me to buy with Margin of safety and added my first allocation there and it never gave me chance to add the second tranche of the company.
Company can command higher valuation in chemical industry only when it moves to specialty products, there is nothing specialty in companies products, it has derivative products and they are increasing the chemistry there but not specialty Chlorotuolene would probably be the first specialty product that they are coming out with, let’s see how it goes but as far as I’m concerned I’ll be watchful here for the vlauations till then.
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