There was an accident (I think fire) at one of their sites and that’s why the dip in profit in 2013. Even then, the demand was so huge that they had to fulfill the orders from their other sites and they did it so that they don’t lose key clients. so I don’t really thing that the past performance is not stable. It has an element of cyclicity in the sense that it will do well when economy is doing well but you are on the right side of cycle as economy is expected to do better from here.
Regarding probable environmental regulation, I think, with NM at the helm of affairs one doesn’t need to worry on that looking at the large number of projects he has cleared recently which were stalled because of one or other environmental issue.
Also, there are apprehensions in investor community as there is a large debt on the books, but one can’t see that in isolation as one has to see what the debt is doing to the bottomline. In this case, It’s adding much needed levers because there is a huge demand for company’s products which is expected to grow with expanding economy.
Overall, I think it is a super growth stock with a great management available at a fair price.
Could you please share Mckinsey report, if you have it.
Disc: Invested and adding on dips