Very well analysed but you are bang on point when you concluded the post. I was almost seeing daily UC and thought I missed the bus but always questioned that if the growth is sustainable? And to be pleased, I didn’t enter when the stock was roaring. I was just trying to answer one question and it deterred me to not invest -
Why did the sales double March 23 and can it sustain? As Russia related reports were out, it further questioned my ability to project steady sales as I am.not clear if the sudden demand of Indian eggs will continue once the war in Russia gets stable. The existing supply chain will kick in and This company may have to sit on the fence.
Global events can turn the dial for a company but unless management clarifies of the demand is sustainable, it’s a big IF. I disagree to your notion of operating leverage kickin in. Why? Bcos the sales have double and margin gain is secondary. Had the sales remained same and it had made 144 cr profit, then I would give credit to operating leverage.
The market knew something which we didn’t and that’s what happened. The sales are slumping down and there’s a good probability that the events which caused the supply to be from India is no more . Existing Russia supply chain disruptions have stabilised.
So , I am sitting on the fence as I don’t know if sales will further drop. Unless management clarifies their stand on what made the sales double and is it sustainable, we are just playing blind cards game.
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