Directionally the company might be going in the right direction in the long term but I assume FY25 guidance of 10% revenue growth was a dampener for the markets. I suppose the markets were already expecting it given the correction in the price in the last 2-3 months.
At 10% revenue growth, 11% margin, conservatively depreciation at 148 crs (annualized the 37 cr q4 depreciation, if I take it as 3.4% of revenues as in case of q4 it will be even higher) and interest of 112 crs (q4 int annualized) and tax rate at 25%, the PAT comes out to be 198 crs which is a degrowth of 10% compared to FY24 full year pat at 220 crs. At 15x TTM, I would say this might be fairly valued. The stock is under 30 and 40 weekly EMA, given FY25 is a non event in the view of the markets it can either fall further or consolidate. Around 214 and 194 seems to be strong support levels. These are just my estimates and I can be totally wrong.
Disc: Hold a tracking position which I might be looking to exit.
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