true. totally agree.
I think it is overvalued considering not very high growth. Better to watch for few quarters to get an idea about profitability of expansion projects.
Disclosure: Not Invested.
@Leading_Nowhere - Tushar bro, how do you see the impact of rising crude (if it happens). Regarding forward projections, the estimates are probably based in the capacity, but numbers can swing quite a bit based on crude and stuff.
Umm what do u mean by not very high growth?
Can any1 tell me if demonitisation could have a big impact here?
Mridul, rising crude would likely cause an inventory loss in some quarters, which would hit the bottom line in the short term.
Shouldn’t it be reverse that crude price increase should have inventory gains rather than loss?
You are completely correct, my apologies.
Inventory gain or loss is a function of how much inventory they maintain. If they largely buy on need basis then rising oil cost will increase cost of production. Thereby negating benefits of inv gains if at all.
stable crude prices are not a problem for the company, irrespective of the level… the gains or loss only arise because of volatile crude prices and may cause loss
CAGR for Revenue for last 7 years is only 14.7%. I agree that it is good growth rate but I believe that it is not very high to justify its valuations.
one should also take into account the loss making ACP unit which was a major culprit till last year.
And what about the growth that is going to come from here ? The company is expanding its plants…
That is what i said better to watch for few quarters to see profitability of expansion projects
Here comes the janta!
Disc: long since a long time
As per below CA, There was recently a meet with institutional investors. Anybody has come across the presentation that may have been made to them?
In this context, I talked to IR and I was informed that it was a kind of Q&A with inst. investors and no presentation was made to them as such and therefore there is nothing more to be disclosed to the exchange.
this is good news… also as far as dividend is concerned, i think its the highest dividend received so far.