May 26, 2023
- Solid conservative, transparent management
- Customer stickiness. A regular consumable business. It’s not much cyclical (many believe otherwise)
- Good operational track record
- 10 yr Sales CAGR of 11% and 5 yr CAGR of 15%
- Profit CAGR of 18% and 19% respectively
- Return on equity of 16-17%
- Net available liquidity of Rs 2300-2400 cr = 9-10% of existing market cap. There has been a continuous pressure on Company to decide about this liquidity. It seems, something might get announced in next 6-12 months. However, don’t bank on that as it’s highly uncertain.
- Growth prospects. As management is non aggressive, they always guide for nominal growth of 8-10%
- Concerns on possible regulatory interventions for some geographies. Can create short term sentimental impact. Company otherwise is well diversified across.