Nesco

Inflation = Rental growth takes care of nominal growth of 6-7%. Available land bank (i guess 20-30 acres) and cash will ensure business growth of additional 4-6%. So 10% growth in topline is almost guaranteed unless management becomes very lethargic and bottomline could be 10-15% depending on again management’s effort.

This growth should persist for next 10 yrs and saturation comes after 10 yrs. For 10% EPS growth, 13 PE is too less. But even after 10 yrs, i suppose inflation equivalent growth is sufficient to keep the stock at 16 PE in FY35 as it is a risk-free business. so right now it must trade at 20-25 PE.

If cash is reinvested for new construction, then investors need not worry but if it is in the book like now and cash to equity exceeds 40% (right now 50%) and payout is <25%, then PE will get hammered.

Traffic in this location is another issue which can inhibit growth but i dont think this land will be left unused in a city like Mumbai.

Whatever it is if management share the earnings with minority shareholders, then NESCO is a stock to hold for next decade.