Based on the historical valuations for the sector, i think what happens in almost all sectors is extrapolation of earnings to future years based on 1-2 years performance. Volume growth of 25-30% for cables and wires for last 2 years has been kind of extrapolated by the street going forward which i dont think is sustainable. The effect is already visible in wires, with Havells Q2 revenues for cables and wires where house wires is a dominant mix has grown at best at low double digit growth and they are seeing slowdown in demand.
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