Investment bankers to the Power Grid IPO has waived the fees.

Please post that link.

basantji

http://bseindia.com/Sast.asp

Yes Reeteshji this will be the esop holders but i was checking with a friend in ICICI bank and he told me that the window is closed now for results are in the offing and so these guys might be selling out before the window gets closed for sq .  

Edited by kg - 07/Oct/2007 at 1:09pm

I had seen this link quite some time back and wanted to do with the latest figures since III qtr. With the FY08 results are out, I thought this is the best time to do.

I have just copied/followed whatever Mr. V had done with the latest figures doing tinkering here & there.

With the present downtrend in the market, I have taken lesser multiples with comparision to what Mr. V had taken.

Please note I have taken 1$ = Rs.41/- & total no. of shares = 34.4673 Cr.

Anything found not correct or exaggerating, let us debate.

Kotak Mahindra Prime

RS. IN CR.     BAF     KMP
TOTAL INCOME      400     740
PBT            52.55     155
PAT            36.55     101
MARKET CAP     1101     2000

This has been compared with Bajaj Auto Finance (BAF). Si nce total advances given by BAF was not available, I am comparing with their Total Income/PBT/PAT.

Eventhough PBT & PAT are better w.r.t total income, I have still taken Market Cap to be Rs.2000 Cr.

Kotak Securities :

Revenue - 1330 cr : PAT - 409 cr

Since India Bull Securities Limited has been demerged into a separate company, I am taking its figures for comparison:     

Revenue - 621 cr : PAT - 252 cr : Market cap - 2841 cr

It is safe to take Market Cap of Kotak Securities at   4500 cr

Kotak Mahindra Capital

This is the Investment banking business of KMB.

Revenues - 285.6 Cr : Profit - 115.3 Cr : EPS - 3.35
MCap @20PE      2309 cr (Mr. V had taken 30PE)

Kotak Mahindra Asset Management

    AUM       US$8.9 bn = 36490cr
        Life Insurance = 1691Cr
                 PMS    = 3400Cr
    Intl. Assets Mgmt   = 8610Cr (US$2.1bn)
     Alt. Assets Mgmt   = 5740Cr (US$1.4bn)
                  MF    = 17049Cr. But this is not equal to Rs.16100 Cr as given by them.

Still, I will consider the lesser of that which is Rs.16,100 Cr.

MCap @6%      966 cr

INTERNATIONAL SUBSIDIARIES

PAT - 64.5 Cr : EPS - 1.87

MCap @20 PE 1611 Cr   (Mr. V had taken 30PE)

KM INVESTMENT + EQUITY AFFILIATES – MINORITY INTEREST

PAT - 40.07 cr (42.6+13.81-16.34) : EPS - 1.16

MCap @15 PE 600 cr ((Mr. V had taken 20PE)

KOTAK LIFE

This is currently a loss making division. I have used Devesh’s calculation of assessing value of Life Insurance in Rel. Capital which is as given below:

Third largest player by FY11. New Business Premium of Rs.75 bn in FY10, 17% margins, multiple of 20 with RelCap's stake being 95% = 984/share

Kotak Premium as on FY08 - 1691 Cr incl. First Year Regular Premium (Rs.1045.6 Cr), Single Premium (Rs.61 Cr) & Renewable Premium (Rs.584.5Cr).

So New Business Premium would be Rs.1106.6 Cr. (1045.6+61)

At 10% margins & 15PE (Devesh has taken 17% margins and 20PE), it works out to 1228 Cr M.Cap.for 74% stake which is very less compared to what Mr. V had taken Rs.1670 Cr. Market cap for Rs.971 Cr. Premium.

Going by Mr. V ‘s logic, for Rs.1691 Cr premium, Market Cap works out to Rs.2908 Cr.

If we consider entire premium of Rs.1691 Cr.,then at 10% margins and 15PE, Market Cap works out to Rs.2537 Cr. Since this is lesser value, I will take Rs.2537 Cr. Market cap for Insurance business.

KOTAK PRIVATE EQUITY

This is what Mr. V had written about PE amount at that time:

It is very difficult to value the Private Equity biz because the profits from it are not going to come in the near future. Nevertheless, if one were to look at the funds under mgmt, 1100 cr, and predict that it will be able to triple its investments over the next 4 years then the earnings of the PE division would be 110 cr per year ( 20% of profits ) which means an EPS of Rs 3.4 and @25 PE it would translate into a market cap of 2767 cr.

If an initial investments had to triple in four years, then it has to give CAGR of 41.5% over those years. Since at the end of 4 years the amount would be Rs.4,400 Crores, profit would be Rs.3,300 crores. So profit/year would be Rs.825 crores. So I don’t know how he got 110 crores profit.

Currently, funds under management : Rs.5740 cr. (US$1.4bn)

Assuming 15% profit under the present market condition, profit = 861 Cr. EPS = Rs. 24.98/-           

Taking PE @ 15 (Mr. V had taken 25PE), it would give market cap of Rs.12915Cr.

Total Market cap of ALL the subsidiaries    27,438 cr
Current Market cap of Kotak Mahindra Bank   25,407 cr
Is anything I have missed?? Have I given any high PE or something??

I have not yet accounted Bank, Trusteeship Services, Forex Brokerage and Asset Reconstruction Company.

As on 18th February 2008, when sensex was at 18,048 and Kotak price was Rs.923/-, Motilal Oswal had given recommendation for buy giving target price of Rs.1,301/- which works out to Market Cap of Rs.44,842 Crores.

Citi in their 11th March 2008 report have maintained target as Rs.1,025/- valuing Insurance at Rs.115/-per share and Rs.110/- to AMC business (6% of MF and 9% for PMS and Alternative Assets). Their EPS estimation for 2008 was Rs.24/- while they have done Rs.29.2/-.