Hi Mayank
I’ve shared my thoughts here Link here
Shortly then stock pealed out at 26x P/E in Apr 2022 and I see signs of exhaustion in momentum.
Partially sold. May exit fully in near future.
Some positives for next 3 years:
Co is diversifying into wealth management, PMS, lending (by partners), distribution of MFs, launching own mutual fund etc. This may more than double the profits in next 3 years, if they can maintain growth of 20% in broking business.
More importantly, with diversification, the multiples will rerate (just broking business is not valued hughly by the market) as the portion of wealth management increases. Look how 360WAM, Nuwama and Anand Rathi are trading at >30x P/E.
Although the current valuations looks attractive for the growth. Historical valuations compels me to sell. May enter if the stock price corrects or time corrects
Disc: No reco to buy or sell