In fact, at 800cr valuation for Frog, and with 65% postbdolution holding for aiZMP, this stake itself will be worth 500cr for IZMO. Assign whatever holding company discpunt that you must.
The operating cash flow conversion looks amazing too, at over 100% over the last 4 years. On first principles, this does look like a no brainer if theyvare able tonachieve their growth guidance as RoEs will improve and the stock can re-rate.
However, the constant increase in intangible assets worries me a bit. I’m not sure what these are exactly, and how business critical they are. Also, the cash flow statements over the past few years have shown fixed asset purchases of 35cr, 24cr, 22cr and 29cr in FY 20 to FY23. However, on the balance sheet, I see a fixed asset increase of only 19cr, 5cr, 12cr and 18cr respectively. How does this reconcile?
P.S. Accounting is not my greatest suit and please educate me if I’m reading this wrong.
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