Indra (XMAD:IDR, Financial) is a company that we have followed since its IPO in the late 90s and which we have had in the portfolio on numerous occasions. At the end of the second quarter, we had a position of 1.8% bought at an average price of EUR 7.3 per share. During the third quarter, the market penalized the company with a further 16% fall. In our opinion, this is a unique opportunity in 5 years' time. Indra is currently trading below the lows hit in 2012, when Spain was on the verge of a bailout. Since then, its financial situation has improved, and new managers with an excellent track record and our full confidence have joined the company. Our average purchase price means paying between 7 and 8 times the profits we estimate the company will generate in two/three years' time. We expect an upside potential of more than 70% in the next 3-4 years.
From azValor Asset Management's third-quarter 2020 letter.
