While the points you make are true, I don’t think they are holding back the discovery of the company. I also don’t think the market misunderstands the nature of the company’s business/ operations. I make this statement basis following:
1. The company, in its earlier avatar of Kilpest, was able to get US FDA approval for RT PCR kits, and was promptly recognized and rewarded by market.
2. The company has been meeting analysts and other investment firms/community from time to time.
3. Though the company doesn’t do concalls, the presentation all through has been giving enough information to decipher COVID and non-COVID revenue.
4. The market has also realized the one-time nature of COVID revenue, with the company being valued at 2-5 PE basis peak profitability in the past.
5. Above all, in a bull market, when people are searching for reasonable opportunities, a company of such nature (by financial numbers) is sure to pop up in screeners and is unlikely to escape attention.
The one-time rerating (from 300-400 odd levels to 850 odd levels) for the company is done and dusted, IMO.
Further performance trajectory would mainly depend on the following:
1. Utilisation/Misutilisation of the cash reserves.
2. Earnings growth.
3. Ability to tap into the opportunities thrown open by UK subsidiary.
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