Positive on demand
The management also highlighted that indirect entry barriers like land acquisition, high capital cost and increasing gestation period due to regulatory clearances may restrict future capacity expansion. This will result into better utilisation and improved realisations. At CMP the stock is trading at P/E of 26.8x FY15E and 20.7x FY16E. The stock has witnessed sharp run in the recent past, and may have such upward trend in future too.