So, the company has announced a buyback @₹750/share which is around ~50% higher than the CMP.
Well, isn’t it a poor decision on the part of the management? So, because promoters will be participating in the buyback, is it sensible to waste the accruals like this?
@₹750, the P/E comes to be around ₹60.
Warren Buffett says a company should buyback shares when it feels it is undervalued. Does P/E of 60 suggest undervaluation?
I always had respect for Mr. Ajith Rai, Chairman of Suprajit for being friendly to minority shareholders, but this decision is poor, i believe.
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