I think the High PE ratio might be another reason.
New stores coming up in the untapped NE markets
Given the considerable decline in the market price, the current price looks good to me given the management’s continued aggression in store expansion (projected to be 40 per year for the next three years) along with a new warehouse with a capital of 100Cr. 2cr is the investment per store as per the management which can be easily funded by the internal accrual (80cr per year).
If all of this indeed materialises, then the current price looks like a good entry point. Any other opinions or Am I too optimistic about this?