Individual subsidiaries have reported stable earnings and an improvement trajectory. We expect PAT to grow at 8% CAGR in FY18 - 20E to 1525 crore. We expect RoE to improve to 12.5% in FY19E with improving RoE of individual businesses and lower networth. Accordingly, we revise downwards the stock valuation to 525 per share on an SoTP basis (660 earlier). We factor 200 per share cut towards group exposures. We maintain our BUY rating on the stock.
Disclaimer: The views and stock ideas expressed by members on stockadda.com are their own, and not that of the website or its management.The views and stock ideas are for informational purposes only and should not be construed to be recommendations to buy or sell any securities.Stockadda.com advises members to check & consult with certified experts before taking any investment decisions.
600 Investors Online.