If you dig deeper into companies’ history, you will find a lot of irregularities in financials, especially in their Real Estate division. The company has invested huge sums in Real Estate Projects and I doubt they are able to realize any money out of it.
Also, we can see contingent liabilities are huge and if any of it realizes, could easily burn one go, all the cash company has. Management on the other hand is not so predictable with their targets, guidance, and so on.
So, factoring all this in, don’t think valuations can be fair till the execution takes place.
Disc: Tracking Position Only.
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