The current standalone capacity is reportedly sufficient to support a topline of roughly ā¹600 crore. Given the current growth trajectory, the company appears well-positioned to hit this milestone within the next two years. This new Assam land acquisition seems to be a proactive move to build the infrastructure required for the next leg of growth beyond that ā¹600 crore mark.
While the revenue growth remains steady, the primary trigger for a re-rating or a stock price move will likely be the mean reversion of operating margins
New Ventures: Margins have recently been under pressure due to the bleeding associated with new ventures/subsidiaries. Management has indicated that they intend to rein in these losses starting from this quarter. As these new segments stabilize or turn profitable, the consolidated margins should normalize, leading to significant bottom-line expansion.