Hello, I have attempted to do conservative valuation of the company based on FY23 financial statements.
My story is based on:
- Honest, intelligent & “conservative with debt” management led by Vikas Oberoi (takes 0 salary)
- Strong brand and focused on Mumbai (real estate is a localized business and hard to scale successfully and sustainably)
- High integrity hence numbers are trustworthy
My valuation is:
| FY23 | Multiplier | Value | Comments | |
|---|---|---|---|---|
| Rental income | 359 | 15 | 5385 | Valuing malls & office business at 15 times FY23 rental income |
| Hospitality | 156 | 10 | 1560 | Valuing hotel business at 10 times FY23 revenue |
| Projects - Inventory | 8543 | 1 | 8543 | BS > Current assets > Inventories |
| Inv + Cash | 1744 | 1 | 1744 | Current Investments + N-Current Investments + Cash + Bank balance |
| Value of properities | 8893 | 1 | 8893 | 4031 = Capital WIP (BS > Non-current assets) 195= Property, plant, equipment(BS > Non-current assets) 4667 = Fair values of the properties* (Page 129, Annual Report) |
| Total | 26125 | |||
| Per share | 718 | 36.4 cr shares |
- properties = Commerz I, Commerz II, Oberoi International School (Goregaon), Oberoi International School (JVLR) and Oberoi
Mall
Comments welcome. What is your valuation story and numbers?