I agree Bheeshma, however you need to acknowledge the fundamental problem with this stock now. Earlier they were able to maintain that water thin margin. Has it changed now is the key question!
And this is because their inability to pass on the increased rice bran prices to cattle feed customers. In last FY 2014-15 AR they indicated they would pass on the prices however you can see from the past 2 quarters, clearly they haven’t been. Reason is they are competing with non-profit Govt. organizations who would never increase the prices in the interest of poor farmers. So you see the water thin margin can be boon or a bane and the risk profile of this is high, hence such valuation.
Disc.: Small position, looking to exit!
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