Inspite of good performance over the last few quarters the stock has been a laggard versus other textile names. Most likely the recent IT raid and absence of any major capex in yarn is ailing the stock. (Currently at 100% capacity utilisation. Doing some debottlenecking)
That is likely to change after successful commission of chemical recycling plant for filament (Pilot in April 22. I am guessing another 15-18 months for a full scale plant). With this Company is venturing in to unchartered territories and there will always be doubt regarding any novel idea until market sees execution.
In Q3 con-call management hinted at not being interested in being just another commodity player hence no announcements of capacity addition in yarn. focus will be to scale up recycling plant and then decide on further capex.
Successful ramp up of recycling plant could significantly re-rate this stock.
Disc: invested
Edit: on Q3 con-call management mentioned that they are planning a buyback/dividend. If done this should help improve perception of management