85% of the revenues comes from Paper Segment and barely 15% comes from the Chuk and other products.
If we do a Sum of the parts, and assign Paper Cos valuation to Paper Biz and FMCG Revenues (I dont want to but still), then the equation works out to following.
Paper
Is operating At Peak margins — > We can assign 4-5 times EV-EBITDA to this stream , because thats what West Coast, JK Paper etc are getting.
So the 80 Crore of PBT in FY 23 translates to approx 90 Crore EBITDA.
Thus getting a valuation of 350-400 Crore of EV EBITDA. Lets assign the Debt to Paper Biz, so we are left with Market Cap of 250-300 Crore to Paper Biz
Chuk and Other Stuff
The market is then assigning 800 Crore Approx to Chuk biz for a sales of ~60 Crore in FY23 and loss making proposition
Yes it is a unique product but at what valuations ?
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