There are huge tailwinds in the industry for organised players due to several factors.
Most of the players guiding for double digit growth.
But at current valuation it does appear that PNG’s valuation might be slightly stretched, especially in light of its margin profile. While the company’s growth prospects are positive, its profitability and margins need to improve for the current valuation to be fully justified. Therefore, a cautious approach seems reasonable unless there’s a clear path to margin improvement or significant growth in non-Maharashtra markets.
Senco looks more reasonably priced even after recent run up in stock price than Png because of geographical diversification, improving studded ratio qoq , batter margins.
Other players titan and kalyan are already trading at much higer valuations.
But if PNG able to improve margins then bottom line will improve significantly and things will look interesting. And they need to geographically diversify themself.
| Subscribe To Our Free Newsletter |
