So long as the business is moving in the right direction, I am happy to hold and keep adding on major dips.
Attended the concall for a while and Shekhar Swarup said multiple times that they have no control and visibility on how long the inflationary environment will last, but steady state EBITDA margins of 25% is what they will aspire for. He repeated the FCI rice purchase at fixed price going forward as well. Capacity will grow 1.5 times by end of FY 23 and more than double a year or so after that. Most of their existing manufacturing facilities and all future expansions will be completely fungible between ENA and ethanol, so they can maximize margins. Ethanol price has been increased, consumer alcohol price increases have also come in for some states from 1st April.
It is now trading at 15 times trailing, which for the certainty of growth that Globus offers is very cheap IMO.
Invested from lower levels. Added some more today.
Portfolio details Vineet Jain portfolio