Valuation Insights: Stock price growing ahead of PAT growth

  1. There has been a sharp rally in the stock over the past three years, as a result of which, stock price CAGR has been in mid-20s despite earnings compounding at only 5.5% CAGR over FY16-19.
  2. ROCE in the mid20s level is at a substantial discount to consumer peer average of ~32%.
  3. Brokerages expect 15-20% growth in PAT over FY19-21
  4. Valuations stand at ~50xFY21EEPS

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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