In the last concall (Q3), mgmt has given a guidance of 1k Cr sales by FY 26, which means the EPS can be alteast expected to be doubled … I believe this will be the bookish case of PE contraction where by the valuations will rise however the price will stay in this range …
My biggest worry is ROE in this company & the dividend payout ratio… the company is paying out all it’s profits and not re-investing and mgmt has somewhere in the past also affirmed that they will continue with the dividend policy which “might” be one of the reasons for promoters buying …
The continued payout increases the PE ratio, promoters buying sustains the price level and ROE struggles as EPS doesn’t grow as the earnings are not ploughed back into the business for growth…
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