Company Commentary: Bangalore Airport IPO as a Catalyst for Repricing

4 days ago

Michael Fritzell

"So it's in the NAV just to clarify they have it's in the books for 2.6 billion, I think it's worth more than four. But if you think longer term, like really longer term, it could be worth so much more. I think you're talking about 110 million people per year, and if you just do the math, 110 times 100 gets to 10 billion. I don't think in this excessively hyped Indian stock market this is crazy; 4 billion is conservative. I think you can get to five or six on 4 billion, if you assume that the current share price is 17 and the NAV is 21."

Michael Fritzell provides a valuation commentary on Fairfax India, emphasizing that the market is undervaluing its net asset value. He explains that if the company, largely driven by the Bangalore International Airport asset, trades at around 4 billion, the share price could reprice from its current levels ($17, NAV $21) to around $32 per share, making the upcoming airport IPO a critical catalyst.

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