Shriro - a value play, page-22

Further to the above commentary, two funds including the Boat Fund trashed the share price to an intra low of 66 cents recently after management indicated they may sell down 25% of their holdings. The funds took the simplistic view that if management were selling down at the IPO price that's what they (management) believed the business was worth (or less). Not everything is always what it appears to be.
Management had already upgraded the 2015 NPAT of $$12M and have indicated Jan and Feb were trading strongly and will give further commentary at the AGM coming up. Broker reports indicate a 9 cents fully franked dividend for CY 2016....that equates to 12.8 cents with franking credits....a 15% yield on the current share price. What forward PE would you put a business on that has already indicated strong growth will be flowing through in FY 17 ? An absolute minimum of 10 with upgrades to 12 > 15 range if they prove ongoing growth. That's an MC of $135M for CY 16 with blue sky of $180 to $220M in CY 17.