L&T Finance has generated quite a bit of hype for its IPO. Due to lack of time, I have not been able to make a better study of the same and hence valuation. Hence, I will restrict myself to a relative valuation this time around.
For this purpose, I shall use the companies that they have mentioned in the RHP. The various figures for them is mentioned below.
EPS | Price (as on 27/07/11) | P/E | RONW | Book Value(BV) Per Share | P/BV | |
Shriram Trans. Fin. | 53.92 | 665.90 | 12.35 | 24.87% | 216.37 | 3.08 |
M&M Financial Serv. | 50.92 | 689.95 | 13.55 | 19.36% | 244.70 | 2.82 |
IDFC | 8.77 | 133.70 | 15.25 | 11.39% | 76.97 | 1.74 |
Rural Elect. Co | 26.18 | 213.60 | 8.16 | 20.15% | 129.90 | 1.64 |
PFC | 23.06 | 192.50 | 8.35 | 17.37% | 132.79 | 1.45 |
Sundaram Finance | 70.01 | 570.05 | 8.14 | 21.53% | 325.22 | 1.75 |
L&T Finance | 2.87 | 59 | 20.56 | 13.58% | 20.4 | 2.89 |
