With improving earnings and margins, the gap should narrow down. There are several triggers that will allow the company to sustain over 2530% compounded profit growth for the next three years.
Reasons for the robust growth include customers shifting to branded space, schemes aimed at drawing more footfalls and rise in the gold prices.
This development, however, is a positive for rivals such as West Coast Paper Mills, Tamil Nadu Newsprint & Papers, Orient Paper Products, JK Paper and Ruchira Papers.
The 2 Pokhran tests were carried on 11th and 13th May 1998 and the Sensex lost 7% in those three days and recovered 5% in the next three trading sessions.
Re-rating of earnings multiple is common and reflects the expectation of better earnings but for a holding company , revision in stock valuation discount depends upon several factors.
Under the current shareholders structure, Essel Propack cannot cross sell products from other non-German European units to Germany and vice versa.
Through getting several celebrity endorsements and advertisements, companies have created a space in the consumers' mind who is now willing to pay extra.
Higher realization in chemical business and strong demand for fertilizer could double GNFC's earnings in FY17
GNFC’s performance was under pressure largely due to loss in the toluene diisocyanate (TDI) division, key chemical used in foams and mattresses.
The cost of coking coal is around 17-18% of the total cost for the company's Indian operations. The proportion may increase to 30-35% due to higher price.
Coking coal prices have doubled since June and may reduce the operating margin in the coming quarters, taking away a part of the benefits of higher realisations.
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