Hi…they gave two reasons first inventory pileup for april may june qtr…second they also had to store inventory due to bis certification which would have led to less parts availability throughout the year…this backlog will get cleared in coming qtrs.
3 Likes
Hello, would be great to get collaborative inputs on current results of PGEL and concall. Someone holding it through its past growth qtrs / year would be in a much better position to comment.
While there are many business levers which can help PGEL maintain their growth guidance like they cater to 35+ brands, new entry in Refrigeration, compressor manufacturing and potentially EV, but opportunity wise, has it peaked out. At 35% CAGR guidance for next 3 years, valuation is on expensive end and I personally feel chance of re-rating or higher compounding seems remote (Here if someone can give their perspective of riding high growth companies in the past and exiting because growth slowed can comment better). PGEL is usually conservative and then revises guidance but this time around, in light of other brands commentary, change of revising guidance this year seems pretty low. Other businesses will kick in only next year. Like many of you in the past, After generating decent compounding here, now I am faced with a situation of whether to trim down or exit. Stock market is a place of regret but I want to have lesser regrets if possible 
. Would be great to hear from experts in this beautiful forum. Thanks
4 Likes
True, now is the time for valuation derating sadly. I believe that the company will do very well and sure, PAT will do 35% compounded for the next 3 years. That would imply PAT increasing 2.5x, but most likely share price will not go up 2.5x. Maybe 1.5-2x if we are lucky. In other words nothing like what we saw in the past.
2 Likes