Pellet prices continue to be at 14,000.
Posting the PE chart of GPIL
The PE of GPIL touched 1.5-2 on 3 occasions-
- Nov 2008 at peak of financial crisis
- July 2013- at peak of loss of interest in small caps when most small caps were trading at 5-6 PE
- March 2020- peak of covid crisis.
At above times, GPIL also had substantial debt, compared to debt free status now.
At current pellet prices, GPIL is in similar PE range- what it was at peak of mkt crisis, and future returns were always huge whenever it touched this PE.
This is the reason, why it is at 40% allocation in my portfolio. (link- Manas Portfolio)