Hi, Dhananjay…
I have already shared my outlook on the present status of the business in the above post. Business is doing good domestically, however mgmt. sees slowdown on the export front. If I assume 20% revenue growth for the next 2 years with margin improvement as guided by the management. I see ~20% growth in earning. And if the P/E remains at 40x, my return will be close to 20% in two years. So, when I say there is no MoS, I mean that, if the revenue growth slows down or there is any kind of one-offs like loss of customer, or if there is margin compression, there will be derating in the stock price. At 450, I see the market is pricing it perfectly for growth without discounting any risk. Hence, for me no MoS. At 18-20% correction, I may consider it a buy…
Thanx…
PS: I have not considered any inorganic expansion by the company in my assumption.
Disc: Invested from lower levels.
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