Why not to buy this high risk small cap in two lines:
Below two stocks are heavily dependent on India’s export/import growth.
Tiger logistics: past 3yr growth 25%, Profit margins 5%, ROE 20, PE 20
Adani ports: past 3yr growth 25%, Profit margins 40%, ROE 25, PE 25
When a large cap with similar prospects is available at same valuation with much lower risk profile, why would anyone be interested in Tiger logistics. Beside Tiger belongs to the grop of stocks I call “Modi election mania”. These stocks rose 10 times, 20 times 100 times, in a period from May 2014 to 2015 without any significant change in fundamentals. Since then, they have been range bound for obvious reason, and this include Tiger logistics.
In 2014 at 20 crore Mcap no one gave a shit about this company and now at 200 crore everyone is painting a great future ahead! Another big recession and everyone will forget this Tiger story for good.