Given the business model of MCX, one shouldn’t look at qoq numbers as top line will not always be linear quarter by quarter due to changes in market sentiments and volatility levels (in both equity and commodity) which in turn drive the volumes. Annual revenue growth is a better indicator of market participation which has been on a continuous uptrend.

Emmforce Autotech Limited, a leading drivetrain parts manufacturer, is coming up with a SME IPO from April 23, 2024 to April 25, 2024.

Tune in as the founder and promoter Ashok Mehta shares insights about the company.

Exclusive Interview with the Chairman and MD of Emmforce Autotech – Mr. Ashok Mehta | SMEmitra

Thanks for the details & your perspective. Last I had checked, current PE is around 50 for HUL. I maybe wrong.

Again, I have some doubts although cannot say for sure, but HUL was around 50 since a long time.

Regarding NIFTY PE vs HUL PE…I think in addition to EPS CAGR, what matters is the longevity & relative surety with less relative risks & variables for achieving that EPS CAGR.

I am not justifying the high PE nor have any opinion about it…just trying to see that if a relatively risky infra/defence/cement/power etc. can trade at “x” valuation, what can an FMCG trade at.

Of course with digital era there have been disruptions in terms of D2C, retail private labels & ecommerce…this is according me a defining decade in progress for what will be about to come…whether the delta to X would sustain or not…how rural, rurban & urban would behave and which FMCG firms are able to work their way around it & how soon & how efficiently…

Thanks for sharing the article.

On the stock price catching up with with profit growth, I feel it is the other way round. in the last 3 years, profits have caught up with share price.

Market is currently uncertain about their dependency on one product, competition coming in this area and destocking of agro chem globally. Some one on twitter mentioned about a report from JM Financial where they mentioned going forward things will get harder for PI as competitive intensity will increase. I could not find the report though.

Management has always been conservative in their projections. They are good capital allocators and continue to enhance their technical capabilities by adding more scientists/PhDs, their relationships with clients are sticky, they have stayed away from commodity chemicals. Optionality of Pharma CMS is yet to add meaningfully to topline and bottom line.

With a right to go wrong, my view is that it one of those where a positive surprise against market perception can give a good upside to stock price.

Disc – one of my top 3 holdings.

What if they eventually prove the thread’s title right? You guys treating me then.