Question: Net profit for the year 2 0 2 0 - 2 1 of Alpha Limited is Rs . 1 4 0 crores. Number of equity

Net profit for the year 2020-21 of Alpha Limited is Rs.140 crores. Number of equity shares outstanding on
01.04.2020 is 14 crore (on 31.03.2021: 28 crore shares were outstanding). The company had announced bonus
ISSue in the ratio of 1:1 on 01.10:2021. Basic EPS of 2019-20 was Rs.12, Calculate basic EPS of 2020-21 and
Compare it with last year. If market price of each share on 30.06.2021 is Rs.300, calculate trailing PE ratio. If the
industry median PE ratio is higher, what is vour conclusion based on the PE you get for Alpha?

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