Taking above inputs, I’ll take a stab at PEL valuation now : -
10000 crs. of capital avlbl at face value = 10000 crs.
16000 crs. Lending biz - 1.2X Book value = 19200 crs.
1500 alternative and 1000 insurance biz - These I blv have more growth and profitability scope so 1.5X Book = 3750 crs.
Total = 32950 crs.
PEL currently trades at 22k mkt Cap. so that’s almost 35% discount. And it doesn’t factor Piramal’s experience and probably the fact that some mkt drawdown may present them undervalued opportunities.
A very back-of-envelope valuation. Feel free to provide counter points please.
Disclosure :- Invested from pre-merger days.
Subscribe To Our Free Newsletter |