Few thesis pointers which look interesting:
- Sitting on operating leverage with a good order book and visibility.
- Management has guided for a strong Q4.
- Margins are on the improving trajectory and shall gradually move towards 12-13% in the next few quarters.
- Company is slowly deleveraging as well.
- Solar power integration for cost savings.
- Plant consolidation for cost savings and efficiency.
- Topline growth of 16-20% with gradual margin improvement may lead to a PAT of around 250-300Cr
- Exit multiple in the range of 25-30x is a reasonable expectation
- If the numbers play out then the odds do seem to be good at the moment
Disc: Invested and biased
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