As per the management the company will grow by 40-45% this fy and 35%+ for the next years to come.
Considering the management commentary, the company should do a revenue of around 8500cr by FY27.
Assuming EBITDA margin of 7% and PAT margin of 4% (base case), the PAT should be 350cr and EPS as 19INR.
Now, depends on the valuation given by the market, the share price can be anywhere from 1300 to 1500INR.
19 x 70 = 1300 (2.6x)
19 x 80 = 1520 (3x)
Considering the government push for the EMS sector and the large addressable global market, the market leaders are expected to grow at a very healthy rate for years to come. Now-a-days electronics components are the part for everything that we use, from automobile to consumer appliances, digital devices, etc. So, the TAM will only grow from here on.
There are many Chinese EMS companies such as Shenzhen kaifa technology, DBG Technology, etc. with Mcap over 30Billions USD. The biggest one in India is Dixon with Mcap close to 10Billion.
In India, the market leaders are Dixon, Kaynes and Syrma (cheapest valuation out of them). So, they all should grow for years to come.
Disc. This is a back of the envelope calculation, not a stock recommendation. Invested and biased
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