Great discussion on this thread everyone 
@Admantium Malkd Nirvana etc. really helped me appreciate the uniqueness of the business.
I wanted to dig deeper into the 2025 Guidance to better understand what it means.
First the 2025/2026 guidance –
AUM 20,000 Cr
RoA – 4%
Leverage 3.8x
RoE – 16% – 18%
What this means – Some back of the envelope calculations
2025 PAT = 800 Crores. [ 4% of 20,000]
For context – FY23 PAT = 60 crore. Even after adding back the deferred tax reversals.
2025 Book Value = 5,000 Crore (Approx) [20,000/3.8]
Current Book Value – 984 cr. + approx 350 cr additional capital recently raised. Lets say 1,400 cr.
Lets assume they raise another 1,000 crore in additional capital between now and 25/26. That’s 2400 cr, leaving another 2600 cr to be added by retained earnings (Addition to reserves) to reach the 5,000 crore figure. Divide 2,600 by 2 or 3 whatever, thats an addition of more than 800 cr to reserves every year till 2025/2026 (That’s more than the 2026 PAT guidance 
) That’s a very tall ask!
I know @nirvana_laha and a few others were worried about book value growth going forward as it hasn’t grown in the past because of Esop’s etc. Nirvana – Do you happen to have any projections of Book growth till FY26?
Given the above – What do you all think of the 2025 guidance? Achievable?
A more than 10x increase in PAT !!! And a steep growth in reserves ?
Is my math right? If so, I would love to get the management’s opinion on the same in the next call 
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