DSIJ Mindshare

As per the announcement, all individual housing loans shall have a risk weight of 35 per cent, if their loan-to-value ratio is at 80 per cent or lower. The term, loan-to-value ratio, means the percentage of the amount financed when compared to the value of the property.

The closest peers such as Rajesh Exports and Asian Star Company saw laggard stock price performance. Both the scrips are trading at a discount of more than 40 per cent from their 52-week high.

The stock has already proven to be a multibagger in the last five years. From October 2015 to October 2020, the stock registered stellar returns of 650 per cent. Being the market leader and a prominent agri machine player, the company has enjoyed higher valuations.

During the first quarter of the current fiscal year, when the lockdown was most severe, the company had delivered sales 10,633 MT, a decline of 24 per cent on a YoY basis. However, on a QoQ basis, there was a growth of 9 per cent, which was driven by steady demand revival in CPVC pipes and value-added products.

The company in its press release mentioned that Q2FY21 group sales stood nearly Rs 450 crore, which is higher by 15 per cent as compared to the same period last year. One of the most stand statements from the company is regarding the aftermarket demand.