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

Appreciate your updates on Glenmark.

But Glenmark hasn’t had much success in out licensing till date. I don’t think management calling their own asset as transformational or once in a lifetime in itself has as much significance. Although Ichnos has been discussed in every concall since a number of years, there hasn’t yet been anything concrete. Even if we agree that these things take time, if the assets were truly valuable, there could atleast have been some progress on raising money at Ichnos.
Views invited as to if/when Ichnos will actually amount to something.

Thanks.

Some quick notes from the concall:

• H2 steady growth expected
• smart grid, IOT devices, customised switch gears are growing
• smart grid requires advanced switch gear fuelling demand
• First order of 5cr for smart meters. Small step forward.
• 200cr worth of order which was earlier expected within smart meters this year does not look like a possibility this year. Next year confident for 700 cr though.
• Targeting margin of 11% by FY 26.
• DC fast charging and smart meters in the future to add significantly in the coming years.
• Other income includes shares of KC industry sold partly considering good valuation. Still holding 70% of the business.
• Expecting 12% margins for smart meters
• FY 26 Guidance – 1600 cr rev from switch gear, wire and cable and building. Plus 700 cr from smart meters with a blended margin of 11%.
• Fy 25 – 20 – 23% growth.
• Smart meter capacity is of 1000cr looking at the market 700 cr looks like realistic revenue target for next year.
• AMSPs have built big order books but the second line order from AMSPs to players like us is still in process.
• Building segment negative EBITDA for the qtr.
• capacity for set up for 100 chargers a month.
• total transformer business approx 250 / 300 cr. We are not into ditribution transformer. Low voltage segment. 690 V max. Application: building, equipments etc. Growth is good as It grew 30% plus.

If they meet their guidance of 2300 cr with 11% margin as per my rough calculation they can do about 125/130 cr of PAT which is about 14 times forward. Let’s see if the management can walk the talk.