Hey harsh, although its difficult to predict the trend of quarterly results especially for chemical companies due to uncertainty about their inventory position & pricing of raw materials (in this case base oil) & End product (i.e. PIB~ HS Code 390220). However the prices of PIB have definitely moderated in the past 3 months which might lead to an okayish quarter.
In terms of PE I completely agree with you that markets dont give good multiples to petrochemical cos, however, if you will look at its past valuation multiples it has generally traded at around 12 times ( which is the rate at which i took my position).
Now, I believe that given increase in diversification of end user base, nicheness in product with high market share thanks to the scarcity of raw materials (which it sources from Reliance & CPCB) & renewed aggression by the young promoter wherein they are developing new products & doing rapid expansions(surprisingly recording very high utilisation rates), I am fairly confident that the coming years will be much better in terms of the quality of the business as well as growth prospects & thats why it deserves a better multiple.
So to conclude, as long as business trajectory will be upwards ( unlike other petrochem cos who recorded poor results in Q1 & are actually seeing increased capacity across the industry), I believe multiples for this business might be higher in future.
It is important to note that its scale is much smaller than other petrochem players & thats why we need to see how scalable this business is… However so far, it looks decent.
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