Yes the numbers are on expected lines. IN fact if we see the last 4 quarters numbers, each number except the tax are more or less similar. So on valuationn front this stock is very very cheap. But for stock price movement, the expansion will be the trigger which will happen next FY. There are some issues which are scaring me at the moment: -
Debt levels are v. high though it pertains to the wind mill. The debt has to be repaid from either existing chemical business or by sale of the wind mill.
Equity dilution is quite frequent for my comfort.
Debt will rise further due to expansion.
The management is very lethargic in responding to invetors queries.
The huge number of investor complaints each quarter is not a good reflection on management.
The problem with such stocks is that it takes a while before it is rerated. IN the meanwhile if the tide turns, then it takes a very long time for it to come back.
Let me add that today the stock is up by 16% and taking advantage of that I sold of 20% of my holdings. I still maintain that it is a stock for people with loads of patience and it has all the makings of a multibagger but one should be prepared mentally for some inaction.
At 38-40 levels this is a stock with great margin of safety and I will continue to hold my balance holdings.
In my opinion one should start buying this stock like a SIP once it falls around 40-42 levels.