I have mixed feelings about this bid. I think its a fair price based on the 2016 figures but I wonder if we have left a lot of money on the table in exchange for a quick gain. The new facility in India was just finalised and would be currently underutilsied. Costs would decline and profits increase in time with use. Also in the full year presentation management had target of increasing EBITDA but 150-200m in around 5 years. Obviously some execution risk but I was hoping this would be a multibagger even from here
BKN Price at posting:
$2.43 Sentiment: Hold Disclosure: Held
