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Over Valued

SL
Slade
Community Contributor

Published

April 07 2024

Updated

June 25 2024

Narratives are currently in beta

Growth

Market Growth rate for next year

* 8.00%

* Keeping it low as growth has been high in last 2 years making the base number big

Compounded annual market growth rate year 2-5

* 12.00%

* Driven by improved domestic market share, new plant, acrylic business & growth in industry

Margin

Pre-tax operating margin for next year

* 12.00%

* Setting margin to company's 10-year average

Pre-tax operating margin (Target)

* 10.14%

* Setting it to the industry average. Number also aligns with the company staying competitive in the market

Reinvestment

Sales to Capital ratio (Current)

* 2.2

Sales to Capital ratio (Target)

* 1.84

* Industry average is 1.84 & Company's 10 years average is 1.56. With time company should reach to industry average

Discount Rate (Cost of Capital)

* 11.67%

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Fair Value
₹422.0
392.9% overvalued intrinsic discount
Slade's Fair Value
Future estimation in
PastFuture02b4b6b8b10b12b14b20132016201920222024202520282029Revenue ₹15.3bEarnings ₹1.8b
% p.a.
Decrease
Increase
Current revenue growth rate
20.13%
Building revenue growth rate
0.18%