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“If they say that quarter two onwards we will see some stability returning, then it will be a very big positive statement because global agencies have been forecasting a 7-8% decline for the full year. So if quarter two is stabilising, then we will end up the year between 0% to 2% plus or minus and it will be a much better situation than what people are expecting,” said says Sandip Agarwal, Lead Analyst – IT, Internet and Telecom, Edelweiss Financial Services.
Post a lull in the IPO market, Rossari Biotech is inaugurating the IPO season with its Rs 500 crore fresh issue and OFS. There are a number of reasons why Rossari is a subscribe for short and long term investors alike. (Analyst: Nirali Shah, Senior Research Analyst. Samco Securities)
- Fundamentally it is extremely strong with a top line, EBITDA and net profit CAGR of 32%, 63% and 67% respectively from FY17 to FY20.
- It carries a moat of leading the manufacturing of specialty chemicals for the textile space and caters to other categories such as home, personal care, animal health etc. with a list of top-notch client base.
- With an exposure to over 17 foreign countries, Rossari has expanded to local as well as global markets to mark its presence in the competitive landscape.
- A robust management and sound corporate governance policy will drive growth going forward and this is already visible in its current return ratios (ROCE 25% and RONW of 32% in FY20).
- Since its P/E is slightly overvalued at 31x compared to average P/E of 27x, short term investors can subscribe only for listing gains.