The valuation looks mouth-watering to me:
The Current Market Cap of the GAEL is INR 1,350 Cr when the Company has 600 Cr worth of inventory, 100 Cr cash and 20 Cr of Net Receivables. Adjusting 150 Cr of ST Borrowing, the Net Current Assets of the Company are itself at 570 Cr. So, the company is available at an Effective Market Cap of less than 800 Cr with about 400 Cr of EBITDA in a normal operating year and has no long term borrowings.
The Company has healthy balance sheet and would hopefully be able to gain market share in the maize segment when at least some of the competition might not be able to survive this downturn.
Disclosure: Invested