Hi Rajat , that’s a really well written piece on pennar industries. IMO , you really don’t need to worry regarding the merger - it will sail through. I think it’s a 101% given.
Pebs shareholders are getting to be part of an expanding pennar industries which I think will witness massive growth in the coming years. They will be basically be de-risking themselves from being part of just the pre engineered buildings business.
Pennar industries shareholders on the other hand will also vote in favour as they believe that pebs has immense potential to scale up and deliver growth. To me pebs is a dark horse in the pack. Pebs has basically suffered due to RM fluctuations as you have rightly mentioned but that should be sorted in the next 12-18 months
Moreover I even feel that pennar enviro will witness robust growth going forward . They have managed to scale up that business within a short span. With the merger going through shareholders of both entities will benefit from being a pet of enviro also
However , this company is all about operating leverage . If they manage to scale up the business in a few years and touch revenues of 5000+ cr keeping the ebitda & interest to sales (3-3.5%) then I feel we will have a big winner.
A big buyback from the promoters is definately on the cards after the merger goes through .
Rajat , what is the source regarding the vale of land with the company (3000 million), is that value 100% accurate ?
Would like your thoughts on all of the above . Thanks