Som distilleries had a big bull run from levels of around 110 in Feb 2023 to a high of 390 in Oct 2023, and then it has started its correction. Some reasons for the correction seem to be
Valuations had run up a lot in anticipation of company’s expected good numbers.
There has been continuous equity dilution with equity at 28 crores in 2018 going up to 39 crores in Sep 2023.
Income tax raids.
Many a times these type of medium term corrections take time to correct inspite of no change in fundamentals. As an example we have Usha martin to study where without any change in fundamentals, in spite of a strong overall market and stock price corrected from a high of 374 to swing low of 253 and has now managed to climb back to levels of 350-360, signalling a possible end to corrective phase.
Stocks can correct 20-30% (or more) from their tops just as a matter of routine correction after sharp rallies. It’s up to us to study the company based on whatever method we follow and decide whether to buy/sell.
@Anubhav_Garg I dont track ethos.
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