Assuming Rs900crs revenues and 22% margins we get to Rs198crs EBITDA. Assuming no reduction in interest costs of Rs20crs and depreciation is 25crs PBT would be Rs173crs. PAT after 25% take would be Rs130crs.
Current market cap is Rs1281crs. Rights issue is 1:3 so new market cap = 4/3*1281 = Rs1708crs.
So at current price stock is trading at Rs1708/130 = 13.1x P/E post dilution.
On the argument that RoE of company is too low, lets calculate FY23 RoE and see. FY23 PAT estimate is Rs130crs. FY22 Networth was Rs287crs. So FY23 networth = Rs287crs + Rs130crs + Rs200crs (assuming peak rights issue) = Rs617crs.
So RoE = Rs130/617 = 21% which is more or less inline with the all the good companies in the industry.
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