Here’s my general view on the business.
The market had previously awarded a high multiple (45x iirc) to the business assuming the same secular growth characterstics, & the expected footfall growth didn’t come through for various macroeconomic reasons.
By management’s own admission, Hyd park hasn’t performed as well as they had hoped. So, how can we be sure the new parks will meet the growth expectations, especially since they are coming up in cities with less spending power than Hyd?
We are also assuming the new parks won’t face any cost overruns or delays like it happened with the Chennai park.
Also, 30x is me being conservative, assuming I have to exit the business during an overall market downturn.
| Subscribe To Our Free Newsletter |
