Narratives are currently in beta
Electrosteel castings is the leading Ductile pipes manufacturer with 40% market share and multiple competitive advantages including international accredations, with rising incomes and infra projects, electro should be able maintain healthy order books and above market margins, the company has focused on reducing debt in the last year or so and i believe it should be able to either a) payout to their shareholders i.e dividends ( Unlikely), or b) develop a capacity/portfolio expansion strategy which should further fortify Electro as a leader in the industry. Their focus on increasing exports should allow electro to tap into new markets and expand over the next few years. This is why i believe that Electro could be evaluated at an expected cagr of 25%. even though the last 5 year cagr has stood at over 30%. Another good indicator is high promoter interest who has increased their holdings from 44% to 46% from FY23 to FY24. It is also noted that the P/E of the company is lower than that of its industry peers, leading me to believe that there is margin just on market valuations.
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