For fund houses, the average buying price matters. Most of them are held at the lower level (look at the recent price moment). Assume yourself being a fund manager, where you are being offered an exit price (1200) on a stock that you bought a few years back at less than 25% of the CMP(Rs 900). Assuming the Final Exit price will be Rs 1500, Will you accept that offer? The judgement will be based on the EBIT/EV i.e. RoIC. The promoters have themselves stated that the opportunities may be large in the business but in the near term outlook is not good. So, as a fund manager will you accept the good return and invest funds with other opportunities or will you stick with the business? If I were a fund manager I would have chosen to exist and redeploy in other opportunities. This is a business where competition is intense and achieving higher RoIC will remain lower. Therefore, there are higher chances that Company will successfully get to the 90% Milestone.
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