Overall, co. is guiding for 6-10% EBITDA growth along with margin pressure next year which is not very attractive. But the average EV/EBITDA multiple across time frame have been above 8.5 times, while currently it is trading at 6.3 times. Even if we consider the EV/EBITDA multiple to revert to average, there are good gains to be made here. But the whole sector’s valuations including Bharat rasayan, etc. are currently cheaper than average so there must be some headwinds in the near future. Are the valuations bottomed out or is correction still possible in agrochemicals? Am I missing something?
disc.- not invested
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