Take the exit pe as 15-20 if growth saturates or market cycle changes as 10 year back 25-30% growing companies were plenty at 10-15 pe which is rare now but these cycles change some experienced persons say this. A selling criteria will be when the stock reaches tripple digit pe. Or when we will judge that growth rate will slow down…we just need to check Financial year starting orderbook to that financial year revenue conversion ratio. For example fy24 revenue is around 225 cr and starting orderbook was 250 cr approx. Whereas for Fy25 the starting orderbook was 700 cr…so we know the growth is going to accelerate (this was my buying point around 700).
Now at end of Q2 orderbook is 1200 which as Q1 end was 900 cr. So only sign of revenue acceleration. Plus it’s a new sector geospatial so market will give a high pe till the growth rate maintains or accelerates. The moment there will be indication of growth slowdown it will be better to exit. This is very plain and simple to understand when growth will slowdown.
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