In my Aug’22 post I was expecting the price to double in 4 years, price then was around 325. From that time there has been over 50% price appreciation to cmp of 500+.
Considering H1 results, and expecting the company to post similar performance in H2, there could be a 20%+ growth in profit from FY23 level. And assuming the PE level to be similar as now, that doubling of price from Aug’22 levels could be achieved by May’24 itself. But if there are negative surprises, like higher receivables, or write offs, or any technical issues wrt to WTE plant hampering its ramp up, or any other unpleasant development, the price will correct, and will follow the earnings trajectory.
Disc: invested, biased.
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