I guess, I got slightly mis-understood. We started from having some kind of view on the future growth potential (say for 1-2 years) and thereby making some safe assumptions about the earnings & earnings multiple for FY22 & FY23. My reply to that point was, their capex plans to increase production by 80% gives us some view in this regard, since they don’t do capex without a good guidance/forecast from their customers . Am not sure, if the point about inventory is relevant in this context. Yes, FMCG, Auto have different and lesser inventory taking into account their proximity to supplier base, nature of product etc.
My understanding here is, say, if customer X has an annual requirement of a chemical for 100 cr. which was being sourced from, let’s say, 3 vendors, in ratio of 20:40:40 and the least amount being from Tatva. So everything else being equal the customer does have the data in hand to ask Tatva to be ready with production capacity for 30 cr next year and 40 cr next to next year as he intends to change the purchase ratio between his vendors.
See these 3 snippet from last concall, you can relate to what am saying.
