Check exchange Filings…they are planning to raise 35000 via debt. So the new promoters or FII/FPIs coming on board will infuse that money.
My guess is as they know in and out of company now…its perfectly fine for them to get a secure return . they would be having first hand knowledge of where company is heading.
No I am not referring to stock price… Stock price as we all are aware that its derivative of business.
What I understand is that over the last few years…their balance sheet has become clean , their NPA’s are coming down , they are making arrangements to prepay the debts / FCCB which are due in next few quarters.
Ofcourse their profitability is down as well but that mostly because they are repaying debt, reducing their overall business, making it more efficient /profitable.
Now they are into stage where their employee strength is increasing again. All they need is money to expand their business which will come via those 35000 crores.
Eventually their profitability will increase.
In the rebranding exercise, it will add credibility to the Corporate Governance. Further, they have applied for NSE Prime which focuses on higher disclosures for CG adding to transparency.
All in all, things are improving in right direction. Rerating is on cards…P/E , P/B multiples are on lower side, even from the historical average perspective.
I expect them to go past average and move towards higher side of range!!
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