– Fairfax India – an alternative to nifty

Hi all,

I recently did a deep-dive on Fairfax India based on the 2023 annual report.

The current asset base looks good and conservatively valued:

However, the fee structure still seems to be a drag on returns. Based on a DCF, the stock looks fairly valued at the moment. I’ve used a 12% discount rate, so the stock should still give around 12% returns going forward with low probability of permanent capital loss.

Link to calculations: Fairfax India valuation (OpenSourceInvestor) – Google Sheets

The full deep-dive and details can be found here: link.

Let me know if I’ve missed anything or you have any differing opinions. Thanks!