It seems now that both the year pre listing with 40%+ OPMs and the terrible Q2/Q3 numbers due to the China situation and de stocking were exceptions on extreme sides of the scale. Looking at Q3 results and the concall following that, this could be a consistent 30%+ OPM business comfortably growing at 20%+ currently quoting at a 1 year forward PE of 21-22.
Valuations versus a well respected small cap peer like NGL Finechem seem attractive, and versus the behemoth that is Divis this is very well priced (But obviously due to scale and history this is not a like to like comparison).
Some interesting aspects of Q3 commentary were that the business revenues are not too constrained by capacity – the revenues can increase/decrease depending on what product mix they end up selling and in what markets – my inference here was that probably margin/sales peaks happen in favourable times (Q4 21 and Q2 22) and very bad times could be troughs (Q2 and Q3 23).
Disclosure : Invested in the last 30 days, biased
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