If anyone has studied past 4 years of this company, a clear pattern emerges. Alternate years are very good followed by flat years. For forecasting EPS for 23-24 and 24-25, I used available details like est sales of 550 Cr in FY 24-25.
Financial Year | EPS | Change |
---|---|---|
2019-20 | 15.71 | |
2020-21 | 21.77 | 38.5% |
2021-22 | 22.12 | 1.6% |
2022-23 | 34.71 | 57.0% |
2023-24 Est | 37.22 | 7.2% |
2024-25 Est | 52.08 | 39.9% |
If you plot stock prices along with this, you will notice that as earning rise, market is rerating this stock and providing higher PE. This also means current year FY 24 is the year of consolidation and stock would start moving up in FY 25 with earning and PE rising in tandem providing good 35%+ potential upside from current price. Needless to say, this assumes no geopolitical event or election related issue in US or India.
Disoclosure - Part of my long term folio held over last 3 years. Continues to add during current downturn.
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