HMVL does look like a very good opportunity as well.
Why do Jagran and DB corp command a premium over HMVL, in spite of growing slower can be 2 fold-
1. Both Jagran and DB corp have high dividend payouts. HMVL is not paying out in spite of having so much cash. (However the management of HMVL has categorically stated that it will be used for inorganic expansion)
2. HMVL’s OPM are lesser than both DB and Jagran. Their NPMs are higher because of the huge component of other income…due to interest recieved on a/m funds. As a result its ROE is also lower.
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