An attempt to estimate Net Profit margin.
3774 Sales
2130 COGS
1644 GPM 43%
Net Profit will require some estimates, since Operating expenses are futuristic, as company has invested aggressively for future growth.
326 -Employee Benefit Exp, Up 40% from last year, clearly futuristic
1155 -Other Exp- Up 107% (It includes 480 for Ads, Up 183%), so clearly futuristic.
1481 Total Opex. which contains a large futuristic element.
If we discount a portion, say 30% of it as futuristic, we can get an estimate, however bad.
Say we take only 1000 Cr as present expense instead of 1481, then Net profit goes up by 500Cr for Fy2021.
So, with 541 Cr as net profit and 48Cr shares, EPS comes to 11.25 and PE comes to 124 for Rs.1400 share price.
Now, this is high. But, not insane. I am paying 130 PE for Dmart.
I also, see 30% growth in Revenue for Nykaa. And hence agree with your 2026 view.
Disclosure: This is not an advice. Just a conversation.
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