Jyoti Resin and Adhesive – Company guided 25% CAGR growth for next 3 years as per their investor presentation https://euro7000.com/wp-content/uploads/Investor-Presentation-Q1FY24.pdf . Over the last 5 years, Company have grown at CAGR of 38%, 103%, 113% on Revenue, EBIDTA, PAT. They are number 2 in white glue(product Euro 7000). Not sure if any of you have used their product. Management is conservative and going into 1-2 new state every year. All ratios are excellent. ROCE 70%, ROE -50%, 0 debt, last 5 years sales growth > 50%, OPM 23%.
I am not sure why this stock keep going downward irrespective of good numbers and available at 25 PE for such high growth company. Is there anything I am missing/not seeing which market is seeing. Currently I have 2% allocation, but I want to make it to 6% as soon as stock moves to upward trajectory.
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