When the management themselves are stating that they will grow at 15-20% over the next 3-5 years, there isn’t much reason for optimism.
A growth rate of 15% means the stock would double in five years. This raises the question: are you unable to find companies that are projecting and delivering better growth than 15-20%? I’m certain there are many options available on this forum with superior results, guidance, and execution, one such thread is here
So why remain invested in IGI? Hope Investing? High ROE, High ROCE, Market Leader, Dividend bhi de raha hai, But Growth kaha hai?
The stock is currently at 300, which means that even if your average purchase price is around 500, the stock would need to increase by 65-70% just to reach your buy price. With a growth rate of only 15%, I personally don’t see that happening anytime soon with this type of guidance.
Sab retailers/mutual funds kohinoor and diamond ki chamak me sapne lete reh gaye, saara maal Blackstone bana gaya.
In the current market situation, protecting capital is more important than seeking capital appreciation.
Disc: Got 2 lots in IPO, exited at 560-580 levels with 1 lot each and chilling with 40% cash levels