The company has demonstrated commendable performance, showcasing an upward trajectory in margins over time and successfully reaching pre-COVID levels.
Following a thorough analysis conducted at an investment price of Rs. 400, it was noted that the company was undervalued. This assessment is based on its P/E ratio of 34.5x, which was lower than the industry's average range of 50-60x, and an EV/EBITDA multiple of 20.8x, which was also below the industry standard of 34.2x.
These indicators suggested an investment opportunity. Upon detailed evaluation, the stock's intrinsic value was determined to be Rs. 444, after accounting for a discount adjustment.
The stock recommendation has been updated from a buy rating to a neutral rating due to the fact that the stock has already reached its target price and is presently trading at Rs. 570, surpassing initial expectations. Even though this milestone has been achieved the stock still holds considerable potential, provided the company maintains consistent growth in margins. As a result, it is advisable to hold onto the stock, with a neutral rating recommended.