Sunteck trades at MCap of ~5200cr.
As per the latest concall (page 6 & 7), management has provided the following info:
- Expected Cash from total unsold inventory (already built) = 1600cr
- Expected Cas from already launched projects (Recivables 2100cr – Outflow to complete 1100cr) = 1000cr
- Expected Cash flow from upcoming projects (GDV (sale value) = 30,300cr – Outflow to complete 9000cr) = 21,000cr
Apart from the above, 2 commercial projects have a sale value of 1000cr ( 500cr + 500cr – one estimate given by management the other one my assumption)
All of this to be monetized in next 7-8 years.
So you pay 5200cr for a biz today which in 7-8 yrs will get you ~24,600cr (pre-tax) !!
And here is the real killer – GDV of 30,000cr is based on today’s market price. Assuming a very conservative 20% increase in market price, 24,600cr become 30,000cr. And that too ignores any future value creation project acquisitions which will likely take place enhancing the 30,000cr future cash flow value even further.
Rare to find such bargains in today’s market !!!
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