Hi,I think there is something amiss in the valuation of ITC infotech that you have arrived at (25,000Cr.)
You have applied a 5x multiple to arrive at that valuation, but not sure on what number you have applied it. If its last year's revenues (2500Cr.) then the valuation should be 12500Cr. and if its the profits (500Cr.) then it should be 2500Cr. and not 25000Cr. in either case.Let me know if I am reading this wrong.
Demerging of ITC Infotech from ITC definitely unlock the value and growth in info business. They must soon demerge its FMCG business also. Cigarette/Tobacco business does not gel with other and hampered the true value of info & FMCG business. GE, J&J, Toshiba are also demerging but for different reasons.
Hi,I think there is something amiss in the valuation of ITC infotech that you have arrived at (25,000Cr.)
You have applied a 5x multiple to arrive at that valuation, but not sure on what number you have applied it. If its last year's revenues (2500Cr.) then the valuation should be 12500Cr. and if its the profits (500Cr.) then it should be 2500Cr. and not 25000Cr. in either case.Let me know if I am reading this wrong.
Valuation of ITC infotech seems some silly mistake FC end.
Demerging of ITC Infotech from ITC definitely unlock the value and growth in info business. They must soon demerge its FMCG business also. Cigarette/Tobacco business does not gel with other and hampered the true value of info & FMCG business. GE, J&J, Toshiba are also demerging but for different reasons.