Some comparison with MCX as per Angel Broking. 1. IEX has an ROE of 30.8 per cent compared with 7.4 per cent for MCX, based on FY18 annualized earnings. 2. At the upper end of the price band, the pre issue P/E multiples works out be 40.9 times of FY2018 annualised EPS for IEX against 51.5 times of FY2018 annualised EPS for MCX.
150. P M| Link| Bookmark|
October 10, 2017 3:16:55 PM
(1100+ Posts, 1100+ Likes)
Ankitxyz, this is a low cost business model, generates a high cash flow and does not need any major expenditure, so it can afford to pay out the profits/cash as dividend. That''s the point.
137.3. gamble| Link| Bookmark|
October 10, 2017 9:09:51 AM
(1600+ Posts, 3900+ Likes)
@ankitxyz agree that high Dividend (in iex case moderate) paying company doesn''t enjoy High PE, But with, Profit Margin 50% Finance cost ~0% Ronw 42% Debt 0 Hugh cash rich company may does!!
Aur itna jyada cash ka kr bhi kya sakti hai company, agree with underrighter no major expenditure, so Dividend jyada dena to banta hai.
Yanha companies apni debt decrement /business expansion me 10-20 sal laga deti hai, aur IeX ko cash spend kre to kre kanha wo sochna pdta hai!!
High margin, zero indebted and "high dividend paying" company who have to "think hard on where to spend money??", all looking great on papers, everything is green (even energy market booming). However forgetting conveniently that its the again the same money for which this company has to think hard where to spend, it is in the IPO market today... growth lies ahead .. I''m just trying to think hard?