There is a permanent change in debt-equity position. Equity has been diluted, debt reduced and balance cash kept in books. When ROE> cost of debt, why hurry to pay off debt? Is it becoz of some time compulsion to convert preferential allotment into equity?
This will naturally impact ROE and multiples.
Need to watch market’s reaction to results. The Q4 production data was a clear warning of what to expect ( i had pointed that out in my April 8 post), but market prefers to continue giving premium multiples.
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