I’m still bullish on this business, positive developments are happening and portion of value added business will keep growing for next few years.
reason I exited are:
- I don’t know how much more PE can expand
- Most probably now it will capture growth only
- If anything go wrong in execution, market can punish the stock price
- Geo-political events, wars, recession in US can cause worldwide market collapse including Indian markets, So I wanted to be liquid.
In simple words, more risk is now embedded in price than it was for last few years.
You are right, I don’t emphasize much on competition as market will grow rapidly for Type IV CNG, so demand will outpace supply.
I think main triggers are divestment, growth in CNG Cascade & Hydrogen cylinder going forward. (while some of it already reflecting in stock price)
I think more re-rating is possible but I’m not sure when and how much.
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