@Rakesh_Arora another insightful post as usual. Some thoughts on GPIL based on it, would love your inputs:
- Can the second order effect of ore cost curve moving up irreversibly, be that players like GPIL with captive mines, have less volatile (esp. on downside) earnings, bridging the perception gap vs converters?
- GPIL is further integrating downstream from pellets or semis to finished (and later specialty) steel, which should further reduce earnings volatility given macro changes wrt China steel?
I feel these might be strong factors to drive multiples rerating, which is anyways quite subdued currently for GPIL