Windlas Biotech Limited IPO Message Board (Page 10)

If we remove cash and cash equivalents of 55Cr while calculating ROE and ROCE then ROE is more than 20% and RoCE around 30%

There is non cash one time impairment exceptional loss in FY 20-21 numbers if we remove same then normalized PE is around 25 and EBIDTA multiple around 15-16

@Informedinvestor - Thanks and good to know that you''ve dug deep into the BS of the Company.

However, RoCE presented above by me is already net of C&CE and is tax adjusted. For RoE, since PAT includes interest income, so would be unfair to compute RoE net of C&CE. Hence, I''d prefer to analyze the Company based on the return ratios that I''ve shared and the Company looks very weak basis the same, to me.

As for exceptional items, there was a greater gain in FY19 than the loss in FY21, all of which ultimately impacts the networth of the Company that I''m buying into, so I wouldn''t be so charitable as to adjust for it. Also, a goodwill which was created on Apr''20 is entirely impaired in Mar''21 is scary (within a year) and speaks poorly of the management to me. Cheers!

We have to look company on normalized basis only then we can take fair decision. Goodwill was created due to merger of subsidiary and it''s always better to clean up balance sheet so that in future it give true picture to investor. As this one time expense won''t be in future so it''s better for us to look numbers in normalized way .

FY 18-19 gain again is due to selling of controlling stake to cadila so we have to remove same while calculating normalized profitability.

I would also recommend to look at pre IPO meet recording of broker analyst presentation to get proper understanding of company and financial numbers . You can find link easily on google