Few observations from Q3 FY24 Results:
- OPM has increased to 9.7% and may go to the 5 year Avg levels of 11% in next few quarters.
- Investment in Petrochemical projects may generate more revenue streams after few quarters / years.
- Stock is trading at P/B of 2.0 and 10 or 5 Year Median P/B is 3.2. This is looks attractively valued now. Stock Price has been stagnated since 2018 even though ROE is improving in past 2 years.
It seems that, currently there are negative perceptions about the stock (similar to Coal India in 2022), and it may give good returns with Dividend Yield of > 3.0% in next few years.
Holding the stock since 2022 and will remain invested for some time as I believe that, Reversion to mean in terms of P/B can happen.
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