But if the merger can help the group gain market share in the FMCG space will depend on how the deal is executed. "It will depend on how the execution is actually implemented. It said while TCL will lose its margin base, existing shareholders have been compensated appropriately. "We keep our estimates unchanged and arrive at a SOTP-based target price of Rs 700 with an implied FY21 EV/Ebitda of 8.2 times. The branded consumer business contributes Rs 266 per share, while the remaining business contributes Rs 434 per share at an implied EV/Ebitda of 5.7 times and implied P/E of 11 times," the brokerage said.

Source: Economic Times May 16, 2019 07:41 UTC