No I agree with EPR tailwinds. But I don’t see how Eco Reco is supposed to benefit from this to an extent that its being valued at 40X sales and 80X earnings given how small and non-unique the business is. If this space becomes that lucrative, I am sure bigger players will step in fairly quickly and set up facilities and capabilities e.g., Amara Raja putting up lead recycling capabilities
Add to this the fact its already at 1000 crores and not a microcap anymore e.g., RACL was available at 55 crores MCap at 60 Crore sales.
So I am struggling to see what the Safety of Margin is? Or should I just buy the narrative and hop on for a scary ride to the moon?
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