As against 8.29 Cr notional loss on MF booked in Q1’22, we can expect a MTM gain of ~ 11 Cr in Q2 going by 30th Sep valuation of MF assuming all units held as of Mar’22 are still intact.
MTM gains since Sep are on the rise with additional ~ 3 cr and a closing valuation of 93 cr (against 87 cr carried in Mar’22).
The company should have a policy to cap the upper limit they carry in MF (@ CMP) in relation with free reserves (ideally 50%) beyond which should be liquidated and held in FD/Govt Bonds or at best distributed as special dividend, if they cannot be productively deployed in the business.
A principal reason this stock is not getting the traction it needed despite spectacular track record is the lackluster use of cash in the business.
Subscribe To Our Free Newsletter |