Whether DCF (or reverse DCF) apply to a company like E2E is debatable. I don’t think it is. The first input to DCF is the free cash flow which is directly dependent on Capex. Now the Capex story for E2E has suddenly changed/changing. The latest (FY24) fixed assets are 210 cr. The new cash injection is 420 cr. If all of it were to go to Capex that means we’ll have a 3X fixed assets at the end of this FY. Even if it not all funds are deployed on Capex, 2X fixed assets in this year is a fair assumption.
IMO, DCF is not tooled to handle this case. DCF is for large, stable, low Capex companies with predictable earning outlook. E2E doesn’t meet any of those criteria!
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