HEAVY MECHANICAL COMPLEX LIMITED TAXILA (A): VALUATION

Abstract

This case is about valuation at HMC which manufactured large-scale plants such as sugar mills, textile units etc. It differs from other valuation cases in that future projections for this plant were different from those of other manufacturers. For example, cash flow projections for a cement plant with steady sales is relatively simpler as it is a mere extension of past productivity whereas sales for HMC complex are very dependent on contract; each contract being different from any previous one.