Interups Inc (ITUP)

[pennypauly]

WM Firm EBITA =>
Pre-Merger: $ 21.94 per share (54 Million Shares) / Post Merger $10.97 per share
PAT: $16.44 per share (pre-merger) and $8.22 per share Post Merger

Valuation is always on EBITA which is on $10.97 post merger x 11 (industry average for Financial Services) => $120 around...

plus, it is not just important what we are drawing but how much we are able to retain and reinvest...If you have seen it is a very healthy 200% retention reserve...
What if these numbers turn wrong, and we will not be able to multiply, Gold is always a liquidating asset and so is rice, whisky, Aviation seats or food carts or real estate...
We are offering a mixed bucket.

Lastly to address how conservative we could go ---
if we assume gold to sell just 100 kilos a day (which capacity is possible for consumption just in hyderabad alone), the EPS turns out to be $8.16 pre-tax and pre merger and $6.12 tax adjusted on 54 million shares and 4.08 / 3.06 on 108 million shares...

So I should write we are looking at $45 in the worst case (4.08 x 11) to $120 in the best case scenario per share post merger on 108 million shares which mean $4.86 B to $12.96 Billion valuation for Cow Capital in the next 24 months. 1/7.5 approximately belongs to ITUP shareholders, which means $30 to $106 potential share value of ITUP on account of Cow Capital.

Note: PS - financials discussed here are just estimates and indicators if certain business factors assumed happen in real terms. Investors may follow caution and prudence in their decisions to invest into the Cow Capital or the backward integrated wM firm. none discussed here is guaranteed but mere estimates and financial projections.

Laxmi Prasad

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