The stock has seen a sharp runup, from 270-80 level to 370-80 level. Is it justified?
In H1 Sep,23; the company did 30 crores topline with 2.6 crores net profit.
Later, the company declared in Nov. 23 that they are doing almost 8 crores of monthly sales with 20+ percentage margin. Lately the company also declared placement of its products in Reliance retail, balaji grand bazaar, SOLV, Ushodaya etc. Keeping these development in mind, we can estimate [purely my estimate] a topline of 80 crores with around 7-8 crores net profit. Thus, today the company is being traded at 30 times p/e based on estimated 2023-24 earning per share.
In Q1, the company is planning to introduce healthy unrefined oil. Thus, even the current financial year growth plans of the company remains intact, and a price earning ratio of 30 for such a fast growing company is not exorbitant.
[Disclosure: Invested]
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