With due respect, I don’t think that is the right way to analyze growth rate because the company has three different business verticals, with different respective growth plans. If we look at their CDMO business as an example, that is expected to grow between 30 and 35%, this is something that the management hinted in their latest conference call.(They might be conservative in giving this) So judging the growth story of the company solely on the basis of PE multiple would not be the right way.
In my opinion the company is poised for growth in the medium to long term, with their gross block almost increasing by 60%-65% between FY24 and FY26. The company also talks about the CDMO/ CMO business having an average asset turn of 1.3-1.6x, with 19 projects in the development phrase.
To sum up I feel. Capex Plans>> Projects pipeline>> better margin profile will help the company do well in the medium term.
Disclosure: I am invested in the company since FY22
| Subscribe To Our Free Newsletter |
