Hi @Aarti Ma’am & @Donald Sir,

Another question to you (considering your in-depth expertise) and to the broader audience is while reading Dhampur Bio Organics AR, we get to know that the company has only invested in ethanol capacities for B Heavy Molasses

However the company also mentions that they divert some syrup towards ethanol production and manufacture syrup based ethanol as well.

How is it possible to achieve the syrup based ethanol from B Heavy mollasses machinery? Is it that the production facility is the same along with the process, only the raw materials are different?
If this is the case, then don’t you agree that the government decision would have minimal impact here?

Will be interesting to track in upcoming days since the injectibles division is niche and demands higher valuation multiples as compared to the other business of Aurobindo.

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@mzambare

You cannot get stuck on only one part of a chapter of a book to make an observation. Try to see the complete picture.

Read the chapter on Banks/financial companies in Pat Dorsey’s book. It seems you have not read it with full understanding. So maybe another read may be in order.

While analysing any bank, PE is not the first thing you look at. Price to book value, ROA, ROE, NPA, NIM etc are important aspects in analysing banking (and even other financials) stocks.

Try and go through a couple of good threads on bank stocks on VP. Or read annual reports of a few banks and then go through concalls to get a better grasp of the subject.

The way you are trying to analyse banks based on a few data points on screener and a few lines here and there from Peter Lynch’s masterpiece comes across as very frivolous efforts. Investing is not as easy as you think, but then it’s not as difficult as you make it out to be. It needs patient and dedicated learning.