PE is many times more misleading. My reading if i can recall once we get rid of one offs like IL&FS write offs n some expenses which were yet to give results, stock was at 32-33 trailing PE. Growth had become stagnant due to rural slowdown , however company still has presence in around 200 towns where as as per concall there r 600+ towns if i remember which fall in there bucket . So still 33% penetration plus SSGR plus possibikity to ve multiple stores . Still i think ecommerce model how it plays out need to be seen n bigger threat. Lot of competition has come from physical retail but considering they ve a relatively stronger model with better key KPIs to withstand pressure , e commerce is major risk to monitor . Now, with growth , this normalized 33 PE should come down. Disc : Invested in last 3 months
1 Like