Plz help me understand, why are u not considering the fact that the coming capex will not only double the topline but also increase and stabilize margins…
Plus at current market cap, the capex has not been factored in …
And aniline prces might not hold stable like this for long , although current it is, so margins in venyl segment can be better even…
And the company stresses that next 10years india will be a major in dye n pigment export with 15percent cagr growth which means the company can further go for capex…
With the qip for capex they seemed desparate for growth , indirectly this cannot be the peak of the business cycle…
The financials are good, balance sheet is clean…
Plus the capacity utilization is only 80percent, at the face of such a high growing demand…
So there is lot of steam left…
Plua thr cpc blue backward integration, is just going to keep more control over the pigment margins which is already stable…
Plus although cyclical pigment buainess is, the year round topline remains stable
I see huge growth and huge undervaluation…
Yes with so many variable parameters dcf model is useless…
I admire ur posts and capacity, i want to know why are u ignoring this company just on the basis of numbers , also taking numbers from esrtwhile scene of 2015 when the chinese business with comipitive margins was a clear suffocation to indian exports…
I dare say, this can be a avanti feed story…
Your insights plz…
Disclaimer… Interested and researching, not yet invested