Polycab is just the latest trigger but its beyond that as you have mentioned.
To be honest as anyone who has run a business of any size, knows exactly how books can be cooked to cover regular needs. So these things are cooked/disregarded into valuations. The problem when scale of the cooking exceeds expectations, then it causes deratings.
On second point of MNC/promoter group companies in same lines of business. You are indeed correct, another big issue in Indian Markets which will never go away.
My broader point was on how to value these gaps and have an mental arithmetic for discounting it. In other words what metrics should be used to give an x+y% valuation discount. I beleive as an CA you would be well placed to through more light into the matter.
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