Del monte valuation seems to be at 2.3 price to sales( 550 crore sales, 1300 crore deal size )
ATFL valuation is around 2.5 sales considering 800 crore yearly revenue for last 3 years (approx)
Combined entity sales - 1300 crore. Price to sales of 2.3= 3200 crore and based on p/s 2.5 is 3500 crore rupees
combined entity Macap based on share issuance 2.4( existing share count) + 1.3(new share count)=3.7 crore share* 900= 3500 crore rupees. ( unless market decides to bring share price down )
So it seems like based on 2.3 to 2.5 p/s valuation is between 3200 to 3500 crore .
Any valuation below P/s of 2 should be a good opportunity ? As per ChatGPT fmcg companies valuations range between P/s of 2 to 11 from bad to great companies. So this seems like fair valuation ?( at this point , I don’t know earnings of delmonte so p/s seems like good ratio to consider for now )
Delmonte has come on share price of 975 rupees , and they are now 35 % shareholders of new company , so they make money only above 975.
Samara cap deal with agro tech was less than 1.5 sales ( really good deal)
I am still figuring out the details, any calculations above may have inaccuracies, happy to take feedback.
If anyone was able to get hold of management / have nuanced views, would be great to discuss
Disclosures- existing shareholder
Puneet
| Subscribe To Our Free Newsletter |
