Thank you to all forum members for the wonderful discussion in this thread. Thanks also to @sahil_vi for his brilliant research in the stock story thread of SBCL.
I like many believe that this business has superlative potential in the next five years. However, its the current valuation (as has often been the case with me) that repels me.
- I took the last 3-Year median PE (20.00) of SBCL as reference
- Multiplied with the TTM EPS of ₹11.08 which works out to be ₹221.60
- The CMP is ₹361.00 which is 62% above it
While I know this is at best an amateurish method of calculating fair valuation. But I reckon that the 62% gap does state that the stock is overpriced. Thus I will wait.
Disc - Not invested but interested with at least a 3-Year investment horizon