Nukta’s account of the proposed offering reports a post-money multiple of approximately 10 times projected 2026 earnings and approximately 6.5 times projected 2027 earnings. These are different earnings bases, and the lower multiple depends on the forecast being achieved. Nukta
The arithmetic illustrates the issue. Ten times Rs3.1 billion implies an equity value near Rs31 billion, while 6.5 times Rs4.8 billion implies approximately Rs31.2 billion. Those calculations suggest a broadly consistent valuation reference, but they do not establish the exact market capitalisation at every possible offer price; that requires the final post-issue share count and pricing assumptions.
At an illustrative fixed equity value of Rs31 billion, the sensitivity looks like this:
| Annual profit assumption | Implied P/E |
|---|---|
| Rs4.8 billion | 6.5x |
| Rs4.0 billion | 7.8x |
| Rs3.1 billion | 10.0x |
| Rs2.5 billion | 12.4x |
Author’s calculations. This is a valuation sensitivity exercise, not a share-price target or forecast.
The investor is therefore buying more than a familiar clothing business; part of the proposition is a substantial improvement in earnings. The correct question is how much of that improvement comes from sustainable sales productivity, how much from margins or financing conditions, and how much remains dependent on expansion that has yet to demonstrate its full economics.
