Nice Analysis, They have put up capacity, they are foraying into E3 and E4 , Gov may consider some form of incentive to pursue EV adoption in future. Do you think the current performance is the bottom and business could look up from 2 qtr down the line?
E3 and E4 definitely expands their TAM and hence their Revenue. Plus its not like the E2 is not growing itself organically (even without the subsidies). So in the short the medium term I think the companies revenue will rise. But I do not think it will rise rapidly enough for a 40 PE to be justified.
Also in the longer term unless they have a solid differentiation (in their BMS technology) I don't see how they can command any premium margin.
Nice Analysis, They have put up capacity, they are foraying into E3 and E4 , Gov may consider some form of incentive to pursue EV adoption in future. Do you think the current performance is the bottom and business could look up from 2 qtr down the line?
E3 and E4 definitely expands their TAM and hence their Revenue. Plus its not like the E2 is not growing itself organically (even without the subsidies). So in the short the medium term I think the companies revenue will rise. But I do not think it will rise rapidly enough for a 40 PE to be justified.
Also in the longer term unless they have a solid differentiation (in their BMS technology) I don't see how they can command any premium margin.