Canfin I think is being re-rated again and is undergoing that re-rating. I had seen it trading at max 2.75-2.8 times FY15 BV. It has broken that upper band and has started trading at 3.45 times FY15 BV. How far will it be re-rated during this phase is yet to be seen.
Markets would keep rewarding this stock coz of its consistency, growth and prudent risk management.
This is one of those stocks where one shouldn’t try to second guess the target price, etc.,.even if stock price appreciates considerably. Should be forgotten once bought and should be held as long as underlying business does well.
After the stocks performance in last 2 years it isn’t easy to say whether it is under,over or fairly valued. But stocks with characteristics like this may undergo multiple reratings when there are other players in the industry who trade at significant or higher premiums.
Discl:Invested and views maybe biased.
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