How would you analyse a stock? Walk the data sheet of Drishvan Cables, from the business to the numbers to the valuation, and end with a view.

Drishvan is a good business priced for its plan: the 35x multiple already assumes consumer wires grow about 25% a year, and the stock earns a 12% return only if the market still pays about 33x in three years. The mix shift lifts EPS from Rs 24 to about Rs 35.9. The view turns positive only if wires growth runs ahead of that; consumer wires growth is the number to watch.

A doctor does not start with the prescription. She asks what is wrong, runs the tests that matter, compares the results with what is normal, and only then decides. Analysing a stock follows the same order: understand the business, translate its drivers into numbers, ask what the price already assumes, then state a view and what would change it. Interviewers who ask this want to see that order, and above all the last step. A walk that ends with a list of facts is a summary; it has to end with a judgement.

Drishvan has two businesses inside one company. Industrial and power cables are sold to contractors and utilities on tender, where price competition keeps margins near 8%. Consumer house wires are sold through dealers to electricians, where the brand and the dealer network earn 15%. Copper is passed through, so copper prices move revenue and the margin percentage but not rupee profit; the real driver is the shift toward consumer wires.

Revenue at 12% a year reaches Rs 7,306 crore in three years. For wires to be 35% of that, they must grow from Rs 1,300 crore to Rs 2,557 crore, about 25% a year, while cables grow about 7%. The blended margin rises from 9.75% to 10.45%, and EBITDA from Rs 507 crore to Rs 763 crore. After depreciation, other income and tax, EPS goes from Rs 24 to Rs 35.92, about 14% a year, of which the mix shift supplies the margin gain and the rest is plain growth. A 24% ROCE with no debt says the growth does not need much capital.

At Rs 840 the stock is 35x today's EPS and 23.4x the year-3 EPS of Rs 35.92. To earn your 12% cost of equity over three years the share must reach Rs 1,180, which on year-3 EPS is 32.9x. So the plan delivered in full earns a 12% return only if the market still pays about 33x in year three; at 25x the return falls to about 2% a year. And if wires grow 15% a year instead of 25%, EPS reaches only Rs 31.6, and even holding 33x the return is about 7% a year.

State it in two sentences and stop. Drishvan is a well-run business whose price already assumes the consumer wires plan arrives on time, so it is fairly valued rather than cheap. The number that would change the view is consumer wires growth: two or three quarters running well above 25% would make the plan look conservative, and growth near 15% would make the multiple look too high. Say the limit too: the dealer margin of 15% assumes no price war from a large new entrant in house wires.