Thank you, but even existing cos like sarda energy have higher valuations than GPIL.
In addition to these profits, GPIL also is a call option on iron ore prices. Shyam or even Sarda (buys 50% iron ore from outside) don’t have this call option upside on iron ore prices.
Also, GPIL has low depreciation and is debt free compared to Shyam.
So, it should rather get higher valuations.
Yesterday, the promoters came on TV - https://twitter.com/blitzkreigm/status/1438030574665408512?s=20
Even now, they are getting 12000 value for pellets in exports because they produce high iron pellets and 11500 in domestic market.
This translates to EPS of 100-110 range per quarter (interest cost will be zero now), or 400-450 annual EPS.
I don’t think any other company is at such low valuations.
Morever, they will be having a big specialty steel plant in place by 2025 which is likely to increase revenues and profits substantially.
No other company like sarda or Shyam are doing such a massive capex and GPIL will be funding the capex by internal accruals most likely as it has very high free cash flows because of zero debt and low depreciation/maintenance capex unlike other steel companies.