The primary motive of private equity promoters is to generate returns for their investors. They do this by acquiring companies, improving their performance, and then selling them for a profit or investing in seed/early/late stage and riding the wave. Private equity promoters typically have a long-term investment horizon, starting from 3-5 years. The company is run by a professional management, so we need not worry.

Hi Ranvir, Could it be the market perception of not so perfect Corp governance?
Historically Reliance has always traded at a EV/EBIDTA multiple of around 11; it had gone up post the liquidity boom post pandemic which seems to have corrected now.

Refining business seems to be taking a hit across entire industry maybe due to the ongoing geo political conflicts… Afterall India is dependent on outside oil to refine.

Check BPCL’s recent quarterly results… its now trading at 2.3 EV/EBITDA

So how does one play the Vedanta story from here?

It’s a given that the promoter Anil Agarwal does not hold minority shareholder interest anywhere close to his heart. The hefty dividends paid were due to the promoter’s need for cash to service the debt. It is also a given that no meaningful investor will invest in the Company in its current avatar. The Company did sell some stake in the recent past n the share price took a drubbing, but therein lies the opportunity. Vedanta will be split up into many companies to sell controlling interests in a couple of them. The Co. is sitting on prized assets for which there would be numerous takers if the current promoter is out of the equation!

The only possible way out for the promoters to get out of this debt trap could be selling strategic controlling stakes in the companies being spun off. If that were to happen there could be substantial gains to be made over the next 12 months or so. The current price levels of about 215 appears to reasonable to enter, but the basic investment thesis assumes that the demergers will go through.

The key takeaways from the provided information about Aurionpro Solutions Limited’s financial results and business updates for the second quarter and half-year ended September 30, 2023, are as follows:

Financial Results:

• Aurionpro Solutions reported strong financial performance in Q2 FY24 and H1 FY24.
• Revenue for the quarter stood at INR 211 Crores, representing a 37% YoY growth.
• EBITDA for Q2 FY24 reached INR 46 Crores, a 32% YoY increase, with EBITDA margins at 21.82%.
• Profit After Tax (PAT) for Q2 FY24 was INR 34 Crores, indicating a 36% YoY growth, with PAT margins at 16.10%.
• Consolidated financial performance for both Q2 FY24 and H1 FY24 showed significant improvements in revenue, EBITDA, and PAT compared to the corresponding periods in the previous year.

Operational Highlights: Banking & Fintech:

• Aurionpro’s subsidiary, Integro, secured a prestigious contract in the Philippines market for the implementation and maintenance of Smart Lender Commercial (SMLC) LOS for one of the largest banks.
• The company received major orders for upgrading and enhancing iCashpro+ from existing customers.
• Aurionpro announced the acquisition of Interact DX, a leading digital engagement platform for the Banking and Insurance industry.

Technology Innovation Group:

• Aurionpro Transit Pte. Ltd. won an order for a rapid transit bus project in the city of Merida, Mexico.
• The company secured an order from one of the largest non-banking auto-finance companies based in the Philippines for cloud managed services.
• Aurionpro initiated the implementation of phase 2 of DC Build projects in Bangalore and Hyderabad.
• The company continued to secure multiple projects to support digital and automation initiatives of Central and State governments in India.

Management Commentary:

• Mr. Ashish Rai, Vice-Chairman & CEO, expressed satisfaction with the continued growth momentum in H1 across major business lines.
• The strong business performance was attributed to disciplined execution and the efforts of the 2,000+ team members.
• The company’s sales channel expansion has exceeded expectations.
• Aurionpro continues to lead the Indian tech industry in creating new and unique solutions through collaborations with global Fintech providers.
• The company is making significant investments in talent and acquisitions to support its R&D ambitions and growth.