This is interesting… the company says they charge the entire maintenance capex to P & L. So there is a double charge – depreciation & maintenance capex, and yet they have the highest margins.

Thanks Mudit, @Mudit.Kushalvardhan.
I have not used reverse DCF yet. If I feel lazy about something then I might use it someday. However, I make my own basic model based on management guidance and my own extraplotions.

My valuation is based on PEG ratio, based on my three to five years growth expectations, I am fine to give 2PEG for investment and breach of 3PEG makes me dizzy .

Below is an example of PB Fintech, based on management guidance and my own extrapolation of 30% revenue growth and 30% incremental revenue going to EBITDA/Profit. I dont give value to FY2030 but just extrapolated. I keep updating this as and when market cap changes or new information becomes available. The biggest risk of doing this is might be we remain in our own world, we always need to test it. For example: take rate assumed here is at similar levels (~13%) through the years so that might be at risk.

Professor Damodaran says, even if models/forecasts are not correct we should still do it. It gives us more insights to us and a range of valuations.

I have such basic models for all my larget bets. I have earlier shared Ami Organics in the thread which is appreciated by @Worldlywiseinvestors ,I mention this as I am his big follower and was delighted to see his like.

Disclosure: Invested in PB Fintech and trasacted in last 30 days.
Disclaimer: I am not a financial advisor and nor a SEBI registered Analyst. The content shared here is only for learning purpose. All the names mentioned here are for example purpose. I may buy more, exit or partly sell the stock/bonds without any prior intimation

Invoking Sixth Sense and its role in Business & Investing

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I like your style of detailed analysis and incorporating all the latest details from.concalls in your estimation. I would like to ask if you also apply the reverse dcf of tijori finance also, and how much weightage we should give to reverse dcf in deciding about estimation for next 5 years or 10 years etc??

In 2021 Dec, company got listed, 22-23 was a bad year for company due to heavy dependency on China and Covid impact. During the last 1-2 quarters, company shifted its focus from China to Regulated markets and that is reflected in margin from geographies. Also Capex spent was slightly delayed in terms of capitalisation by 1-2 quarters.
But a company which is doubling its manufacturing, getting into new markets(and getting traction), doubling its RnD, and also doubling its partnerships (albeit the outcome of partnership will materialise in next 2 years) is a stock to watch out in near future.

Companies which may have a temporary setbacks but have a strong roadmap ahead and is having multiple growth paths are the ones which we might get at a decent valuation.

Beauty lies in the fact that Capex is mostly going to be funded by its internal accruals and minimum debt.

Check this Video, Will give you little more insight about company, Chairman talks about supriya vision and you can see the insides of manufacturing factory -:

Supriya Lifescience Has Big Expansion Plans | Know Your Company | NDTV Profit