Agree with your point that major CAPEX except acquisitions is unlikely unless some major top line improvement is foreseen in which case it will again be beneficial….regarding domestic opportunity I don’t agree as in your example of school books moving to tablets, more established domestic player like Repro might benefit more than MPS as MPS will have to invest a lot in acquiring domestic clients in which case margins might suffer…..but anyway it’s not MPS focus as otherwise CEO would not base himself in US…….
Valuations are getting very attractive at less than 15 times FY16e EV/EBITDA but a lot will depend on nature of acquisitions…..the long time taken to acquire the company out of QIP proceeds has reduced margin of error considerably for MR. Arora and even a slight mistake on that front might not be taken kindly by the market……however, unless a blunder is committed, correction might be more in the form of time correction rather than price correction…..but, in case of a right decision, scope of appreciation seems tremendous and your contention that at current rate odds are more in favour of reward seems logical….
Corporate governance and IR is excellent and the only missing link the acquisition — I hope a good acquisition gets announced by q2fy16 numbers.
Rgds.
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