Read this and due to my huge holding i obviously panicked. Then i did some back of the envelope calculations. Currently from 21.6 rs approx 1 rs is lost to tax giving a payout of 20.6. Next 2 quarters as per concall should be a bit flat considering no major deals are expected but based on the commentary im expecting overal 23 or so for FY24 which would still be majority tax free. FY25 is the year when this would affect(unless its a typo) but the payout should be around 24 to 24.5 by then. Also they would have a whole year to restructure their payout(is this possible?). Assuming its at 50 percent tax in FY25 that would mean about rs. 3.5 to 4 lost to tax. Which means the tax free return would still be similar to todays return in 2 years. So as long as one is willing to accept no upside in returns from this year for the next 2 years then its still an ok investment. However add the group issues and risk of dilution at lower prices plus interest rates and things get a bit murky.
Disc: Invested. Trying to think rationally in the face of an obvious hard sell
| Subscribe To Our Free Newsletter |
