Couple of things that are worth nothing about Revathi
1). TheRenaisance Group(Abhishek Dalmia) bought 40% of the companyand another 20% from thepublic in 2004. Since then they have increased the networth ofthe company from 87cr to 131cr.
2). The company fundamentals have improved both in terms of EBITDA Margins and PAT margins with 2009 as the worst year.
3). ROE, ROA have significantly improved as well over the last 2 years, as well as flow ratios have improved as well.
4). Trades at a PE of 3.45x and EV/EBITDA of 3x (consolidated) level.
5). Trades at near book value
Now the negatives -
1.beaten down as it is in the EPC construction and mining sector.
2). The company has gotten into real estate which always makes me uncomfortable
3). Don’t have data from before 2005 to see how the company had done before the Renaisnce group acquired it.
Am still researching about the company business, comments welcome !! Also, anybody who can work out the numbers (can’t seem to find data before 2005) would be helpful, so we can compare.