Have entered the stock at record low valuation , reason being it trades a record low valution seems like a cyclical stock where margins depends on cotton prices and peak margins have been 20% a year at current sales it amounts to 400cr ,that gives it a pe of under 10.
I feel there is no survival issue for this company as there is hardly any debt ,only thing which is a negative for me is debtor days and the how debtors are increasing YoY.Which makes it clear this is not a great business but paying pe of 30 right now at its lowest for a brand which is known by everyone in the country does seem cheap to me.
Disc:invested as a cyclical bet recently.
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