The turnaround from a underperforming business to a good one is complete. The management has walked their talk and made many of us rich in the process. (From sub 11% ROCE to 16% ROCE along with reducing debt, From faltering growth to steady growth)
The journey from a good business to a great one begins. The growth drivers are in place. Only part remains is the execution and I have a high confidence on the management on doing so. (ROCE of 20%+ along with negligible debt and consistent growth)
If they can indeed deliver on their potential of 2500-3000cr revenues from CNG segment, along with LPG orders from other 2 PSU’s and Hydrogen segment begins delivering growth, then this can be a 5-10 bagger still from current price in the next 5 years.
(Supreme industries trades at 3 times the valuation multiples of TTPL. Which is justified due to higher ROCE’s, lower debt etc. But if TTPL delivers on it’s strategy, then we can see valuation expansion here as well)
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