The key numbers are as follows
CMP=Rs 380
Market Cap - 875 cr
Sales ~1580 cr.(>1000 cr from past few years)
P/E = 10 (Avg EPS of last 3 years)
P/B<1
The company is buying back shares for some time now at Rs 400 and Rs 450 now. So the intrinsic worth of the company seems to be somewhere between 450-600.
Interestingly the company is taking loans to buyback the shares. It still has room to take on more debt to completely buy back the non promoter holding of 33%. So is it a delisting candidate? possible.
But these are some of my concerns
- Market overall seems to be overvalued. Is it a good time to buy a secondary company like this?
- The market price is quite stagnant from few years now. Only recently crossed the 2005 IPO price of 350.
- How will appreciation of Rs against Euro impact its business
Overall company looks undervalued with little downside but good upside.