In addition to the above talk on over valuation, [which I completely agree with and is the same reason that I although liking this company have never gained confidence to build up a position], the bigger question to answer is also that should/would the paint companies now demand higher / rich valuations in the current scenarios. Current scenarios meaning new entrants in the paint market coming every now and then. I agree Sirca has a niche with the type of paint product they are offering but the entrants are so big that nothing would stop them to give them a fierce competition.
The play in Sirca seems to me the growing of margins [manufacturing shift] and hence the bottom line for the company in coming years.
I would welcome more inputs or rebuttals.
Disc. – Not Invested
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