Sahrudaya Solution
Sahrudaya Solution
Sahrudaya Solution
• Group members:
1. Sankalp Mishra - BD22092
2. Subham Jyoti Mishra - BD22112
3. Nielakshi Saxena - BJ22135
4. Soham Roy - BJ22154
Alternatives available:
They can have better cash flow rights at the expense of control rights or better control rights at
the expense of cash flow rights. Dilution of equity has been long planned but the amount of
dilution is dependent on the valuation of the firm. The terms and conditions of the contract will
also be framed accordingly. They can either seek investment to the extent of easing off the
current debt liabilities and maintaining a health interest coverage ratio or seek higher investment
in anticipation of increasing capital expenditure and growth of the firm leading to better cash
flows in the future.
Conclusion:
• Valuation of SHPL:
Using FCFF method, the valuation of the firm comes out to be 13225 million at WACC of 781%
and perpetual growth rate of 2%.
With this, the intrinsic value per share is INR 663.49 given the number of shares as 19932384.
This shows that the firm is indeed undervalued and the investment decision of Medicover is
quite promising and rational.