I think PE re-rating may happen but it will be slow and mostly due to the rising tide of the bull market where every stock is getting lifted and nothing specific to the company. The reason being the lousy nature of the promoter and the management. They seems to have no genuine interest and seriousness about their business - remember they sold 20L shares in open market last quarter when the stock was just getting the traction?
This was further evident in yesterdays conference call - the call was supposed to start at 2 PM but it didn’t until 2:20 PM and when they finally started the call, nobody from the management has the courtesy to explain the reason behind the delay, let alone apologize for it. Then Kedar Vaze tried to pass on the mike for the opening remark to someone else who apparently was not prepared at all and wasted another 5 mins saying “Yes…I am here…ahh…uhh…” - etc. They finally started at around 2:30 PM and by that time I lost all interest.
I think promoter quality matters most when you invest in a company especially when there are other options available in the market. I think that is what reflected in the price action - even though the results are good and the stock is fairly valued (compared to the peers), it is down more than 5% post results announcement.
Disclosure: I hold the stock around 124 and no plans to add further. Views are personal and not a buy or sell recommendation.
Thanks!