The stock is not cheap. At 1700, it was at 90 PE the correction has got it down to 76 PE. Bevco and African business is around 10% of the revenue. Even explosive growth there won’t matter much. It’s India business that is important and it’s slowing down. Volume growth has come down to 20-22% from 35+. It will go down further below 15-20 as business matures this and next year. The margin expansion was a lot due to pet coke prices. Given the growth slowdown, it’s natural to have valuations compressed.
Disc – Invested since 500 levels. It’s 3X for me and was 15% of folio till last week. I have reduced and it’s now 7% of folio. Planning to hold this position and positive on business.
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