I had made some errors in understanding Q2 numbers, one was not taking note of the revenues due to some escalations which were billed in Q2 for previous period, other was lower tax rate. This quarter the finance charges increased and also higher depreciation due to PCMC WTE project commissioning. There is a possibility of FY24 revenues being flat or slightly higher (approx. 5% growth v/s FY23). Net profit could be flat.
The mgmt is expecting a 22-24% revenue growth for FY25 (C&D revenues will come in FY25). A PE of 20 looks reasonable, not cheap, but not expensive either.
I am positive on the company as they are striving to diversify revenue from non-MSW business, C&D and vehicle scrappage. However, for me, the B2G nature remains a significant risk.
Disc: invested
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