Few developments in last one week.
They have reported below than expected December sales numbers so sales for Q3 would be 850+ cr which is significantly up yoy but down qoq. Company in their presentation is guiding for 59rs EPS for FY22 which means only 25rs for H2, a significant decline versus H1.
Mostly the company will report lower margins both in Q3 and Q4 despite higher exports as raw material increases will be reflected in these two quarters. Important to see how much margin contraction happens.
They announced results date on 24th Jan and only after some time of announcement the stock locked in LC. So market is expecting significant margin compression in this quarter.
Stock is consolidating around 800 range for past 4-5 months and should come out of ASM framework in 1 weeks time. Personally at these valuations, I don’t see much downside risk but upside movement totally depends on margins that they will report.
Thanks