Gokaldas exports — cup and handle/rising channel

Thanks for highlighting the overall approach of Reverse DCF.
(considering the context here is Valuation primarily)

I understand the tool is from Tijori Finance

The Earnings of FY 23 has been subdued considering the Global Macro’s and Retailers reducing the inventory.
Anyways, given the Acquisition, the future earnings would be benchmarked post Merger (including Atraco no’s)
Currently, that would increase the Earnings by around 30-35%

Coming to the other variables.

1. Discount Rate of 20%

2. Terminal Multiple – While historic reference usually would be a good measure, there are multiple reasons for Rerating of the Sector as well as the Company.

3. Implied growth rate over ‘x’ period No of Yrs before assigning a Terminal Multiple – how long the company grows at above the terminal growth rate.
   Eg. FTAs provided Bangladesh with a long runway to grow above average.

4. Once these are through, we get the Implied growth.
   The management (who has been quite conservative so far in their guidance) has benchmarks of 20%

Considering the specific situation on each of the factors, (play of the Art & Science of Valuation) – looks like this would be interesting to explore in more Depth.

Disc: Invested & Biased.