While I’m not a valuation expert, my rough estimates suggest that with a projected PAT of ₹160 crore for FY25 (₹40 crore in Q1), and applying multiples of 10-15 along with cash reserves of ₹1400 crore, the market capitalization would be in the range of ₹3000-₹3800 crore.
The current Mcap is 4800 cr with PE of 22. It might correct some more from these levels (not a expert!). Feedback welcome!
MSTC Ltd.: Growth through to E-Commerce (26-09-2024)
Ex-Tamil Nadu minister V Senthil Balaji walks out of jail after SC grants bail in money laundering case (26-09-2024)
The Supreme Court has granted bail to former Tamil Nadu minister V Senthil Balaji in a money laundering case linked to a cash-for-jobs scam. The court cited delays in the trial and imposed conditions, including regular appearances before the Enforcement Directorate and surrendering his passport. Balaji had been incarcerated for over 15 months.
RBM Infra – a less discussed SME (26-09-2024)
@kdjolly firstly, I dont know who Sandeep Singh is.
Secondly, what you have stated is a motherhood statement without understanding the nuances of infrastructure and cosntruction contracting.
An infra company is one who owns the asset forever or owns it for a limited period time in a BOT (built own operate) project. They need to finance the project. Let us say the cost of the project is 100 (90 of hard costs and 10 of interest capitalized during construction). The infra company arranges 100 to finance (maybe 70 of debt from banks and 30 of own equity). If the economics of the project dont make sense the infra company defaults on the 70 of debt which is the NPA you are talking about.
RBM Infracon is a not an Infra company. It is an infrastructure construction company. The infra asset owner contracts out construction of the assets to people like RBM. So the loans are not on RBM’s books.
For example in the 2013-2018 period infra companies like Jaiprakash Associates, Lanco Infratech etc went belly up. The constructors like L&T etc are still around.
If you are trying to suggest ONGC, Adani, Nayara Energy and RIL who own the asset are going to go belly up and that will lead to orders given to RBM Infra getting cancelled then its different.
There are execution risks which i understand. Can such a small SME company execute such a large order backlog? Can they generate cash flow from operations? These are some of the valid concerns. Your concerns seem to random to me.
US stocks open higher on AI euphoria after Micron’s upbeat forecast (26-09-2024)
US stocks opened higher on Wednesday, with the Dow Jones Industrial Average rising 0.47% to 42,113.42, the S&P 500 gaining 0.70% to 5,762.22, and the Nasdaq Composite leading the way with a 1.36% increase to 18,327.34.
Moldtek Technologies (26-09-2024)
Is the outlook positive post US elections along with the rate cuts? If anyone attended AGM please share the management commentary on the same.
Sebi cuts listing time to T+3 working days for debt securities issue (26-09-2024)
Sebi on Thursday decided to reduce the timeline for listing of public issue of debt securities to three working days from six days at present, to facilitate faster access to funds.
This new timeline will be optional for the first year and mandatory thereafter.
“It has been decided to reduce the listing timeline in case of public issue of debt securities and NCRPS to T+3 working days from the existing timeline of T+6 working days,” the Securities and Exchange Board of India (Sebi) said in a circular.
The move would help in enabling faster access to funds for issuers.
Also, the move would align the listing timeline in case of the public issue of debt securities and non-convertible redeemable preference shares (NCRPS) with that of non-convertible securities issued on a private placement basis and specified securities.
Further, to ensure ease of compliance for issuers, the listing timeline of T+3 working days will be applicable on a voluntary basis to public issues of debt securities
Rupee weakens to Rs 83.642 per dollar; Powell remarks in focus (26-09-2024)
Foreign investors have purchased over $10 billion worth of Indian stocks and bonds so far in September, marking the strongest monthly inflow this year, according to data from the National Securities Depository Ltd.
Broker’s call: Infosys (Add) (26-09-2024)
HDFC Securities