Sanghvi Movers

Thank you for your explanation. I have 2 major caveats to your view:

1. You are using 15% yield but that is just the revenue it generates. To calculate value, we need to see the amount of free cash flow it generates and not the revenue. As mentioned in my earlier calculations, a simplistic cash flow comes out to around 9% (this may actually go a little up or down with leverage but ignoring that for now)

2. I feel 9% discount rate is quite low. I personally will not invest in a stock if I feel it will give me an average return of 9%. Using XIRR method, i would discount at at-least 13-15% which is the minimum return I feel is worth investing for (Usually I aim for even higher but since we are talking very long term I feel 13-15% seems like a reasonable discount rate)

Note: Again my own personal rough calculations and views. Please let me know if there are any errors.