gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITED3. Return on Net Worth (RoNW)Year RoNW % Weight2005-06 21.00 32004-05 12.00 22003-04 8.00 1Weighted Average 15.83%4. Minimum Return on Increased Net Worth required to maintain Pre-Offer EPS of Rs. 19.65 is 16.08%5. Net Asset Value per share (NAV)Adjusted NAVAs of March 31, 2006 Rs. 102.99*After the Offer Rs. 122.19* On diluted share capital after considering bonus issue made in November, 2005.6. Comparison with Industry Peers*Based on the nature of activities of Company, the comparison of its accounting ratios with its closest comparablelisted competitor in India is given below:Name of the Company Face EPS (Rs.) P/E (times) NAV (Rs.) RoNW (%)Value (Rs.)Simplex Infrastructure 10.00 47.90 27.80 268.20 26.30Madhucon Projects 2.00 7.90 26.90 109.9 18.40IVRCL Ltd. 2.00 8.50 26.60 48.70 29.30Gayatri Projects Ltd. 10.00 19.65 15.01 102.99 21.00*(Source: Capital Market July 17 – July 30, 2006. Category – Construction)7. The face value of Equity Shares of Gayatri Projects Limited is Rs. 10 and the Offer Price is Rs. 295 i.e. 29.5 timesof the face value.The BRLMs believe that the Offer Price of Rs. 295 is justified in view of the above qualitative and quantitativeparameters. See the Section entitled “Risk Factors” and “Financial Statements” beginning on page iii and 120 of thisProspectus, including important profitability and return ratios, as set out in the Auditors Report beginning on pageno. 120 for further information.34