Book Value per share as in Oct.’23 (post fresh equity, QIP) is Rs. 43.48.
Have done some simulation for 1 yr i.e. Sept’24, considering:
- With pressure to meet Cost to Income target of FY 25, opening of new branches shall not be aggressive, more focus on business growth in current branches.
- 4% QoQ growth in BV
- 5% increase in Q1’25 in BV with reverse merger
- No fresh equity
Simulated BV at end of Q2’24 comes out to be Rs. 53.41 per share. That means currently, Bank is available at 1.6 times 1 year forward BV (1.5 times if invested via IDFC Ltd).
Disc. Invested from lower level via IDFC Ltd., largest holding. Hence, biased.
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