Hi @manmohit, As per my understanding, the last 12 months P/E is only 57. Also, if the company can just repeat its Q1’ FY18 EPS of 1.2 for the remaining 3 quarters of FY18 also, the forward P/E after Q4’FY18 can be calculated as 33, assuming that, the price just stays at today’s price of Rs. 158.
I think, there are two aspects to the rally which we are observing these days. One is, as you mentioned the hype (may be, half hype and half reality) surrounding advanced carbon and also the other products in HSCL’s portfolio. Second reason (a more generic one) is that, we are already in a strong bull market (as per my belief) and market is ready to take more risk these days, especially on quality micro/small/mid caps, hence willing to pay more premium. Why I believe so? I have tried to address that on the following discussion thread for another stock:
Disc: invested