Though ROE is an objective means to ascertain if the business is a wealth creator, the price at which it is transacted also matters a lot when it comes to wealth creation for the investor.
Should I invest in this IPO is a question that haunts most individual investors. Pondering over the fundamentals of the company and valuations can be of immense help.
PK Bharadwaj, CFO, Jayaswal Neco justifies the premium price of allotment to the intrinsic value of the company. He further adds the intrinsic value lies in the coal and iron ore reserves.