Post the above increase in open offer price, BSL's cost of acquiring 20% interest in GOL has increased from Rs3.2 bn (at Rs403/Share) to Rs4.4 bn, while its DER would increase from 0.8X to 1.8X (pre warrant issue). In the event, the bidding war between ABGS and BSL intensifies further; it is likely to significantly increase the cost of acquisition, negatively impacting the attractiveness thereof. However, the long term interests are likely to remain intact.
At CMP, the stock is trading at 3.7X FY10E and 5.4X FY11E earnings of Rs55.7 and Rs38.5 per share respectively. We have a 'HOLD' rating on the stock with a target price of Rs171.
--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to investorspleaselisten@googlegroups.com
To unsubscribe from this group, send email to
investorspleaselisten+unsubscribe@googlegroups.com For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en
-~----------~----~----~----~------~----~------~--~---
No comments:
Post a Comment