Any idea what can be a moat in this business. The stock is very cheap today- so got interested. However, cant gauge how well or worse is it positioned vis-a-vis a competitor from Bangladesh, Pakistan or Vietnam?
Interesting thing is however, that their garment exports have grown every year (although less than 10%)- this means somewhere business is flourising and competitiveness is there but hard to gauge.
Export incentives at 6% now (Earlier 11%). IF this goes away too (although unlikely in my view), there can be risks to margins. EU has FTA with Bangladesh and Pak and for India it attracts duty.
If it is able to hit a run-rate of Rs250 cr from Sep FY22 quarter (as they guide), PAT could be Rs80-90cr. Hence i got interested in stock, but evaluating further