Like you said,there are no free cash flows.Difficult to put money in such stocks .
The company holds Birla corp, universal cable and mutual fund investments which is worth 2300 cr. At 70% discount, its value is 690 cr.
If we value EPC business at 12 P/E at an EPS of 83 (FY2018), it worth another 1000 cr.
Hence 690+1000 = 1690 cr. But market cap of VTL is 1180 cr.
Today it rallied 20%. Is it a pre-result rally? Q1 results will be reported tomorrow.
It may be due to its subsidiary, Birla Corp reporting yesterday a 94% increase in PAT.
Anyway VTL is undervalued as it holds investment worth 2300 Cr in Birla corp.
Vindhya Telelink has come up with very good results. Whether growth sustainable?
Their annual report is extremely upbeat and they are playing big on surge in OFC demand in this country.
And forgetting everything, it’s still trading at P/BV < 1.
Vindhya Telelinks has appreciated by almost 30% in last 3 months. Is it then a possible multi bagger?
I doubt, reasons:
a. It’s part of MP Birla group. They used to do well some 100 years back. The group companies growth seem jaded and tired now.
b. Cash FLow is negative as per AR 2017.
Even though it might have appreciated by 30% in last 3 months but it doesn’t qualify to be a probable multibagger.
So Vindhya Telelinks may spurt by 30% in 3 months, but it can’t continue to keep creating wealth for it’s shareholders. Views invited.
I thought this is the Annual Report (AR): http://www.vtlrewa.com/pdf/Annual-Report-2017-18-VTL.pdf
AR for 2018 will be released next year, right?