Let’s look at some facts and figure of the company:
> It is a small cap company with a market cap of just Rs . 1,910 Cr .
> The ROCE is at 21.9% and ROE is at 16.5% which is impressive considering the size of the company.
> Stock P/E is at 23.9 which makes the valuation very attractive as compared to sector P/E at 45.63.
> Increasing Market Share: Over the last 5 years, market share increased from 9.55% to 14.78%
> Higher Than Industry Net Income: Over the last 5 years, net income has grown at a yearly rate of 51.13%, vs industry avg of 43.32%
> Higher Than Industry Revenue Growth: Over the last 5 years, revenue has grown at a yearly rate of 13.68%, vs industry avg of 4.17%
> It is almost a debt free company, reducing its borrowings continuously on year on year basis, that's a very good sign from investment perspective.
> Topline and bottomline both very impressive.
> FIIs and DIIs both have increased their stake in the company very recently.
> Stock looking very good on chart, its making rounding bottom pattern, one of the very profitable chart pattern.
> Trading above 100 and 200 DMAs .
> Stock has not just recovered Covid fall immediately but also raised almost 4 times from there.
> It is clear from at the bottom that lot of accumulation is going on in the company and bull run is around the corner.
> With the easing lockdown restrictions in multiple states the economy is showing a sign to recovery and construction activities are going to start with a big bang.
Considering all the points mentioned above it is clear that this is a fundamentally very strong company with good technicals on chart.
Fresh Buy - At CMP i.e. 168.
Old Buy - HOLD
Target - 3 times at least