Management has guided for a core PPOP increase of 45-50% for FY24 and FY25. If core PPOP increases by 45% and provisions are expected to increase at a lower rate of say 27-30% then PAT will grow at a much higher rate of around 55%. Considering the extinguishment of shares from the reverse merger process, shares outstanding will be some 688-689 crs. This yields me an EPS of Rs 5.05 and Rs 7.7(based on share capital of 688 crs after merger). Once the market sees such kind of growth, rerating is very much possible.
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