The article gets the capacity and addition numbers wrong but catches the drift on improving consumer business. No mention of the ethanol policy providing downside support to earnings due to guaranteed high capacity utilization as well.
I think the rally uptill now has been a value catch up, and Globus is still cheaper than other alcohol companies. Given that more than 50% of their business of ENA and Ethanol is in demand surplus territory where high continued realizations are likely, I see no reason why valuations won’t catch up with Radico or the likes on a price to sales basis. From there, I think valuation will start mirroring earnings growth.
I had posted a question previously, in case anyone knows the answer, please do share.
Disclosure: Invested in end June as a one year trading bet for valuation catch up.
Full portfolio here Vineet Jain portfolio