On the subject of valuations, market has very adroitly responded to the management’s cleaning up and revival efforts and the company seems to be now fairly valued
With the company’s business having broadly reached its pre-disturbance level, to determine the valuation trajectory going forward, I believe, market will seek insights on the
(1) management’s ability in growing the revenues of the legacy business above the 2-3X GDP, rather than the margins at which this growth is attained
(2) Traction on the company’s new initiatives on
i. branded consumer durables – fans and pumps and
ii. EV motors
(3) Corporate action in terms of leveraging company’s healthy valuations for inorganic growth
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