PI Industries - Superior Business Model

[Chandragupta]

@Rafi_Syed

Why market is giving high valuation in terms of PE or EV/EBITDA to Sumitomo ? Where as the later is kind of a commodity play; PI is more focused play ?

My two cents:

• Sumitomo – Japanese parentage, less capital intensive than PI therefore higher ROE & ROCE, less floating stock due to 75% promoter holding, smaller size so faster growth prospects, more scalable business than PI.

• PI strengths – moat business model so less downside, less cyclical risk.