Market going up is never the concern but the valuation going up is the concern. It is true that nifty is overvalued at 22-23PE (20-21PE could be nominal.so 5-10% correction is nominal).
But that is not applicable to ACML since its OPM of 15% in last 3 quarters is well below its historic average of 19%. Hence it will mean revert since its a cyclical business. Also, one must consider that even under this depressed OPM, the EV/EBITDA right now is 6.5. we all know the management is great for a small cap standard. So margin of safety is already available. one cannot assume MoS exists only at 4xEV/EBITDA. we should not refrain from buying just because nifty is trading above historic valuation.
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