Depreciation of exactly that humungous capex would weigh down PAT numbers from its true value. Looking at EBITDA margins is a much better indicator.
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Hello Gautam,
I check the Phenol price on screener, which is not updated timely. Could you please tell me the link where you check the prices?
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Operating profit margin is currently near a multi-year low (13%). Raw material prices are high, advanced intermediaries are facing demand-side issues, phenol prices are low and there is a global oversupply.
With depressed sales, margins, and profits, the P/E and price-to-sales ratios appear optically high.
The announced CAPEX is expected to start delivering results from FY27 onwards.
The next phase of the company is purely dependent on the current bets it has taken. The important question here is whether it will continue as a commodity chemicals player or move higher up the value chain.
Considering all of the above, anyone investing in the company is essentially betting on the jockey (i.e., the promoters).
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