Just my thoughts on this business.
I was holding from 500 levels to 800. But sold at 750.
My reasons were – Too concentrated product portfolio. Only 2 products and that is also in TB where there can be bigger regulation/price control.
Management is good but has to wait to see how they can actually put the new plant and diversify in other products. And that is nearly 2 years away as per the management.
And valuations are not cheap for sure. Though PE is less. Check price to sales. It’s 8 and Divi’s is at 10.
For just 2 product portfolios, a P/S of 8 is just too costly.
Personal opinion.
dr.vikas
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