Thanks for adding the remaining details about the company. Adding a few personal thoughts which may add color to the current scenario.
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The valuations are back to the listing day now and the gap with Laxmi has increased further after Laxmi listing at premium and with the current price of both & the expected EPS earnings.
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I do not expect Laxmi to go down in valuations anytime soon, as it seems in line with other peers in specialty chem sector and if they walk the talk of Fluro chemistry capex & improve the bottom-line going forward.
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Ingrevia has lower market cap than Laxmi with more than double the top line & more than triple EBIDTA compared with Laxmi, so it should revert to atleast mean valuation in future. In how much time, it remains to be seen.
| Ingrevia | Laxmi Org | ||
|---|---|---|---|
| 9M Fy21 EBIDTA is 418 Cr & EPS is INR 13.81 | 6M Fy21 EBIDTA is 85.4 Cr & EPS is INR 2 | ||
| Estimated FY21 EV/EBIDTA based on 9MFY21 EBIDTA | Estimated FY21 PE based on 9M FY21 | Estimated FY21 EV/EBIDTA based on H1 EBIDTA | Estimated FY21 PE based on H1 FY21 |
| 7 | 14 | 29 | 47 |
- Ingrevia demerger brought back memories of the Solara Demerger from Sequent & Strides in June 2018. After listing, Solara, in 43 trading days was at 9 continuous Lower circuits & after few days 16 Upper circuits.
It was nerve wrecking to muster courage and keep adding after those continuous LCs and just enough information about the demerged assets, management background and past financials. In hindsight it paid out worth every penny. Solara is one of my top multibagger holding today, not necessarily just because API sector played out in last year but I was gunning for decent Margin of safety in buying at those lower prices, confidence in the business and promotors with longer term time frame.
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With this demerger, All erstwhile JLS investors would have got Ingrevia shares free of cost and many of them who do not want to hold it anymore are looking to exit which creates imbalance in supply & demand of shares. Also, some degree of information asymmetry in Ingrevia exists as the official past financials are not disclosed yet and they are still to declare any official results post demerger. Potential new investors would want these to be able to invest meaningfully. These factors may keep the valuations subdued, but not for long I believe/hope.
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There was just one compilation of Past financials in the Monarch report which I am sharing for ready reference.
Disc:- Invested through demerger and have been adding every day since listing.