Aether Inds was a recent listing and on first look appeared extremely expensive. Sales for fy 23 is 650 crores and market cap is 10000 crores with PE of above 100. Company has done lot of capex with assets nearly doubled in last year and talking about another 750 crores capex in next couple of years. Promoters hold 81% stake. Concall provides a bullish scenario for the company. But I still cannot get my head around the valuations.
One of the models I have seen succeed in technicals is a stock clearing its Post IPO highs and consolidating. Aether is an example of this phenomenon. It listed in June 22, and posted a swing high of 1048 and underwent consolidation and traded broadly between levels of 800 and 1050. In 2023 it crossed this range and posted swing high of 1209 and is retesting the breakout zone and currently at 1058.
There are a lot of examples of big winners quoted by the likes of Mark Minervini wherein he states that even the starting valuations are expensive and the stock moves up and keeps getting expensive. Here in case of Aether there is promise of growth and a part of the business is somewhat niche. I am posting this live example to see how things pan out. disc: no positions, but in watchlist.
| Subscribe To Our Free Newsletter |
