Building on my previous buyback speculation:
Look at the current state of the company:
- Marketcap is 1750cr > generating a solid cashflow of 300+ Cr . i.e Price/Cashflow is below 6.
- 800 Cr sitting in Mutual funds, Bonds, Bank deposits & Cash. i.e 1/2 the marketcap is available as liquidatable cash.
- 70% is already owned by the promoter, 10% is with HDFC ,12% with retail&HNI folks and rest with NRI’s FPIs & corporate bodies. – Concentrated shareholder a good sign for delisting.
- Despite being in a sunset industry, the business still has solid acquisition proposition for large media tech companies.
What would any sensible promoter do? buyback and increase their shareholding to a regulatory max of 75% & Pursue delisting attempts @ book value or slightly higher. Look for a strategic partner who can add complementary strengths [Like Sharechat(35kCr valuation] ] and move forward.
| Subscribe To Our Free Newsletter |
