Dear Rupesh,
Thats rear view investing…doesnt work in real markets.
Net cash flow is negative due to aggressive repayment of loans ahead of date.
Tax paid is low in past ( point agreed, will need to check why ) but for q1 they have paid 4.5 cr of tax on 18.5cr PBT, which is 24.3%.
As company becomes debt free, interest coverage ratio will be infinite ! Also, with debt payback and increased profitability, return ratios will see significant upside.
My take is simple:
For 300 cr you own 2.3 million tpa (2,300,000,000 kg per annum)
for 30 cr you own 230,000,000 kg per annum
for 3 cr you own 23,000,000 kg per annum
for 30 lacs you own 2,300,000 kg per annum
for 3 lacs you own 230,000 kg per annum
So if you buy 3 lacs worth of shares, you personally own a 2,30,000 kg per annum capacity fully integrated cement plant personally ( with captive mines and power plant ) ! that has to be worth owning and cherishing !
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