Folks,
Do we have further upside on this stock?
How long this growth can sustain? Is it good to trim now?
Please share your rationale on this.
Invested at lower levels and tracking the company and management commentary for the last couple of years.Holding for now. May trim if the run up happens to be too fast for my comfort.
In my view, next monthly sales volume and value turnover should also be a record. That would make it three consecutive months of record monthly numbers. This would mean that the quarterly numbers for Q2 expected in October should show record quarterly revenue and NP in the companies history. The sweetener is that, Q2 of FY26 was the lowest quarter for revenue and NP in I think 4-5 previous quarters. So the base for Q2FY26 is low and Q2FY27 is expected to explode. So the YoY growth should look stupendous. Unless management springs up an unplesant surprise in the next month, unlikely but its always good to be skeptical.
This is my read untill Q2 results, post that it all depends on the auto trends domestically and exports picture and alloy wheels expected grpwth that comes from the management in the concall.
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This was one of the few laggards in auto anciliarity sector( I am speaking as valuation). I think it has more legs left for further run as it is a rerating candidate, and we know what happens when rerating happens. It is a duopoly in the sector with high export revenues. Management has generally done good and expanded into more value added segments. And we can look forward to further margin expansion. So it can run up. I have a small holding and I am in the habit of diluting on every rise. So generally I do not reap full reward when stocks rise. I am looking forward to get the full reward for holding unto the stock for long.
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