KSOLVES is in Additional Surveillance Measure (ASM) list for short term by SEBI.
Reference → https://www.nseindia.com/reports/asm
Definition of ASM →
Additional Surveillance Measures (ASM) are set on securities with surveillance concerns based on objective parameters like high-low price variation, client concentration, number of price band hits, price variation between closings, and P/E ratio.
Dis: I have a tracking position in the KSOLVES at lower levels.
We might value the IT company based on the dividend yield or PE ratio or both.
But considering that 40+ operating margin is not sustainable, we might consider the future margins in the range of 20 – 30(like other service based it companies) percent for the guessing the company valuation in the future.
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