The answer is simple and you most likely know it. The Valuation is not justified. We cannot use FIIs entry level as a gauge because we don’t know their thesis or most likely their investment could have been made based on their discussion with the new management.
The only way I can see the Valuation making sense is the bullish case I described before: Sales/Profits tripling in 5 years and then growing at 20% for say 10-15 more years. It was hard for me to envision that happening and the major reason behind my selling out.
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