Not a veteran but here’s my take:
This is essentially a turnaround story with tadka of undervaluation. The company rewrote what they wanted to do. They reiterated this in concall and interviews that they carefully studied which niches they had the potential to become market leaders in the long term and were relatively resistant to the wider IT slowdown. They chose 4 verticals and pursued those. In a way, the switched the operating system of the company.
Market was skeptical of the new businesses and unhappy with old, hence the sewer-like valuations. There was also some bad corp. gov. story here in the mix.
What I and some people who caught this round of jump did was catch on to the market’s lagging valuation to our advantage. This has played out quite well. People are not going all in in this stock rather, there is a transition happening in the investment reasons: from undervalued to growth story.
If the businesses of this company pan out as is being monitored QoQ, I will continue to hold.
Current valuation is okay imo. Maybe slightly over but within range. No reason to take action.
The market share is not really the issue here, the pie will grow. IT infra/cloud business is just beginning in India. If Zoho can make a billion dollars squeezing Google’s market share, Reliance can be squeezed too(and they haven’t even started).
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