Hi Guys,
Just tried to do a sensitivity analysis on KAMA
One very Important point here is even if SRF falls by a 50% and the valuation gap goes back to the mean difference of 67% then the fall is going to be between a 19% to 23%.
SRF is trading at a premium valuation than its historical mean valuations across different parameters but instead of price correction the possibility of time correction is high for earnings to catch up with valuations unless there is some business related issue.
Even with SRF giving 0% returns if the difference goes back to mean we make close to 60%
Risk reward is favorable and we also have some dividend yield 1.4% i think
Please let me know if any calculation in the above excel is wrong
| Subscribe To Our Free Newsletter |
