How you calculated the valuation is stretched and risk-return is not in favour?
As per my analysis, for valuation, firstly we have to segregate the loss on manufacturing of project related OEM. Because, as per management only OEM other than project related is profitable. In project related OEM, company is selling the product below the cost of manufacturing and it will be profitable only after the commencement of O&M business, which takes at least 3 years to start. As per management currently project business is 20% of the total revenue. But how much cash company is losing in project business we don’t know because it is not separately disclosed in financial statement.
Without knowing it how can we value the company on price to earning basis?
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