There is an entire 5 mb document on the bse website that im not able to upload here for some reason. Youll find it on the embassy office thread too. Buying at 20 percent discount to NAV does the following
- Accounts for any errors in calculations/over calculations. For eg when embassy said their nav was 380 or so a few years ago a seperate study by an independant party showed it at just under 300. So you cant take it at face value.
- At price of NAV yield would be just 5.5 or so percent pre tax. A post tax FD would be a safer investment at that price.
Personally im expecting the payout to reach pre covid levels(24.70) by FY 25 and there should be a jump after as hotels and current investments start kicking in. My current FD at idfc is at 7.05 percent for two years with quarterly payouts… at rs. 325 embassy would be at around 7 percent pre tax assuming payout of around rs. 45 over the next 8 quarters. The good thing is the yield will increase in time + there is a chance of a return to nav allowing me to sell some units at a higher price + only about 15 percent of the yield is taxed at 30 percent. Its a no brainer for me especially since they are so meticulous wjth their presentations and open in their concalls.
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