Mankind is buying BVS with EV = 13500 Cr for EV/EBIDTA = 22. The current cash on the book is around 2500 Cr. This falls in bucket 2 capital allocation error for me where I perceive it is wrong and I can not relate with the decision
Again it can turn out to be one of the best acquisitions in the history but I am not confirmable and willing to put my money and time on such managements. I am more than happy to watch them becoming multi baggers from side lines
In capital markets, growth is ‘addictive’. I like to partner with managements which exercise “restraint” but still show agrresion. My belief is managements will not say these things explicitly in investor interactions but one has to deduce them by observing their actions over cycles
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