Back of the envelope Valuation:
Lets assume by Fy26 Mgmt. Achieve sales of 800Cr as guided. Currently the OPM is close to 30%. Lets assume the OPM 2 years forward will be 25%. Since the company is debt free & also depreciation is very low, lets assume PBT margin will be 22%. At 25% flat tax rates, PAT margin will be close to 16.5%.
So, PAT in FY26 will be close to 132Cr. Present Equity is 0.76Cr. So, earning per share will be Rs. 173.68. At 40x P/E the share price will be ~7000 rs.
So, if somebody is buying this today at 5000rs. Considering the sales guidance & margin remain intact there is potential of 18.32% CAGR return in 2 years.
Disc: Tracking quantity.
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