Thanks for your note. What’s your rationale of giving 30xPE, if a company is sustainably growing revenues at ~20% and EPS ~30% (operating leverage)? First of all, why 30x to FY24 and not FY25. Assuming 30x multiple on FY25 earnings would imply market cap of ~7000 cr. To me 30x is minimum for a company with strong moat, high pricing power, sustainable earnings growth, ROE above 20%, zero debt and good corporate governance. With more parks to come, stock can easily give 30% CAGR if management executes well on its guidance.
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