If its operating margins vary so much from 16% to 35% during covid years, it indicates that its margin varies as per market conditions and raw material price fluctuations. This means , business doesnot have any moat as such and no pricing power and it has to price its products as per its customers. It doesn’t have much say in its product pricing. Also it means, if in future , if its margins improve, then its price will also recover, giving the false impression of its secularity. But its inherent nature of margin fluctuations and no-moat and at mercy of clients…will still remain.
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