Scripscan:Taneja Aerospace & Aviation Ltd
cmp:40
Code:522229
Story:Last year there were rumours of a Delhi based infrastructure company wanting to take a stake in their air strip project and the valuations being talked about are very high, and at that time the stock touched a high of about Rs 250–270.The company has a 250-acre land where they have made an airstrip which is largely unutilized and I see that as an opportunity, the reason that we are getting the stock at a market cap of just about Rs 100 crore is primarily because of the reasons which are mentioned. When things look rosy and everything starts looking good. When they are fresh with orders for aircraft and the value unlocking which people are expecting that airstrip will have that happens and you won’t get the stock for Rs 35-40. The reason you are getting the stocks at current valuations is only because of the negatives which are surrounding and the good thing is that the promoters themselves have increased their stake at about Rs 28 in the month of November last year. At that time there was pessimism all around and the stock has also been range bound for a very long period of time and that’s a reason you are getting this stock for Rs 40, when there were rumours of someone big buying that airstrip business and fancy valuations being talked about at that time the stock was not available for Rs 40 and it was available for Rs 250–270. So this is the one for the patient investors who can just sit on the stock and wait for company to unlock the value for the shareholders.
Thursday, December 29, 2011
Jagatjit Industries Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger
scripscan:Jagatjit Industries Ltd
cmp:55
Code:507155
Story:Jagatjit Industries is a 60 year old liquor company famous for Aristocrat brand Whisky. They also had brands like Maltova, etc. which they sold to SmithKline a couple of years back. This company was dragged in problems between the promoters of the group and a wide order in the month of March by CLB, that problem has not been resolved. CLB ordered the company to buy back the shares of other promoter group and they have already brought back the shares which led to reduction in equity from about Rs 52 to about Rs 44 crore. If you look at the valuations of the company, at the current price the market cap of the company is just about Rs 240 crore, the gross of the company is Rs 625 crore and this being a 60 year old company and the market cap just being 40% of gross the real value of the assets must be much more.This company has done sales of about Rs1350 crore on the last year, so even if you compare this company with the drop on the basis of sales and brand equity this looks grossly undervalued compared to the peer group.At 55rs it looks to be a decent buy.
cmp:55
Code:507155
Story:Jagatjit Industries is a 60 year old liquor company famous for Aristocrat brand Whisky. They also had brands like Maltova, etc. which they sold to SmithKline a couple of years back. This company was dragged in problems between the promoters of the group and a wide order in the month of March by CLB, that problem has not been resolved. CLB ordered the company to buy back the shares of other promoter group and they have already brought back the shares which led to reduction in equity from about Rs 52 to about Rs 44 crore. If you look at the valuations of the company, at the current price the market cap of the company is just about Rs 240 crore, the gross of the company is Rs 625 crore and this being a 60 year old company and the market cap just being 40% of gross the real value of the assets must be much more.This company has done sales of about Rs1350 crore on the last year, so even if you compare this company with the drop on the basis of sales and brand equity this looks grossly undervalued compared to the peer group.At 55rs it looks to be a decent buy.
Jenson & Nicholson (India) Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger
Scripscan:Jenson & Nicholson (India) Ltd
cmp:2.90
Code:533520
Story:-Jenson & Nicholson is engaged in the business of manufacturing and selling of paints for the decorative and industrial applications in India.The company has got a country wide presence with 33 branches and stock points across the country and manufacturing plants at Naihati,Sikandrabad and Panvel.The company over the years has fallen on bad times and ended fiscal 11 with a small turnover of 49crs.The story is that it has got lucrative real estates in form of its panvel factory land which has been closed.The company has further got some land in naihati where its operation has been suspended.If i add up the too the present marketcap of the company would look too little(Though the mangement denied to figure the exact value of the lands)The company has got lots of debts in its book which ARCIL has taken over aggregating to nearly 39% from IDBI, SBI, UBI, BOB and BOI.On words of the management," They are actively involved in the restructuring process and is likely to take over the remaining debts from other Banks and Institutions".Further AAIFR has appointed SBI Capital Markets Ltd. as Consultants to conduct the TEV study and valuation of assets. It is expected that once the process is complete, total restructuring plan made with the help of ARCIL will be submitted before the BIFR for their final approval.
Conclusion:Lots of developments are expected to happen for the company in the coming days.Technically speaking too the company has got very strong support at rs 2.5.Downside is very limited but on happening of any of these developments the company is set to hit higher levels for sure.
Trading range:2-5 is the trading range for the company.One can accumulate the counter and exit partly at that level.
Btw:This stuffs are heard from sources/my contacts/insiders so may not be that perfectly accurate.Kindly do your own due dilligence before even thinking of having a position in the same.
cmp:2.90
Code:533520
Story:-Jenson & Nicholson is engaged in the business of manufacturing and selling of paints for the decorative and industrial applications in India.The company has got a country wide presence with 33 branches and stock points across the country and manufacturing plants at Naihati,Sikandrabad and Panvel.The company over the years has fallen on bad times and ended fiscal 11 with a small turnover of 49crs.The story is that it has got lucrative real estates in form of its panvel factory land which has been closed.The company has further got some land in naihati where its operation has been suspended.If i add up the too the present marketcap of the company would look too little(Though the mangement denied to figure the exact value of the lands)The company has got lots of debts in its book which ARCIL has taken over aggregating to nearly 39% from IDBI, SBI, UBI, BOB and BOI.On words of the management," They are actively involved in the restructuring process and is likely to take over the remaining debts from other Banks and Institutions".Further AAIFR has appointed SBI Capital Markets Ltd. as Consultants to conduct the TEV study and valuation of assets. It is expected that once the process is complete, total restructuring plan made with the help of ARCIL will be submitted before the BIFR for their final approval.
Conclusion:Lots of developments are expected to happen for the company in the coming days.Technically speaking too the company has got very strong support at rs 2.5.Downside is very limited but on happening of any of these developments the company is set to hit higher levels for sure.
Trading range:2-5 is the trading range for the company.One can accumulate the counter and exit partly at that level.
Btw:This stuffs are heard from sources/my contacts/insiders so may not be that perfectly accurate.Kindly do your own due dilligence before even thinking of having a position in the same.
Cinevistaas Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger
Scripscan::Cinevistaas Ltd
cmp:2.5
Code:Cinevistaas Ltd
Story:Company has 4 acres land at Kanjur Marg, Mumbai.Market value of same is around 120 crs. However,company is not selling the land.In 1st Phase, company is developing an I.T. Park on 2 acres which will have around 2.20 lakh s.f. area.Company will not sell the same. Entire property will be put on lease which will earn around Rs. 26-28 crs. as lease rent each year.This works out to 2.60 -2.80 times of its Equity. Company will be spending around 48-50 crs for construction of this I.T.Park to be completed in 18 months.It is being developed by company itself without any partnership with any builder. Expected lease rent is calculated on the basis of prevailing lease rates although when project is ready in 18 months,company may get higher lease rates.For Phase-II, company will undertake development of remaining 2 acres on which also it will build 2.20 lakh s.f. I.T. Park.Worth a punt at present levels.
Btw:This stuffs are heard from sources/my contacts/insiders so may not be that perfectly accurate.Kindly do your own due dilligence before even thinking of having a position in the same.
cmp:2.5
Code:Cinevistaas Ltd
Story:Company has 4 acres land at Kanjur Marg, Mumbai.Market value of same is around 120 crs. However,company is not selling the land.In 1st Phase, company is developing an I.T. Park on 2 acres which will have around 2.20 lakh s.f. area.Company will not sell the same. Entire property will be put on lease which will earn around Rs. 26-28 crs. as lease rent each year.This works out to 2.60 -2.80 times of its Equity. Company will be spending around 48-50 crs for construction of this I.T.Park to be completed in 18 months.It is being developed by company itself without any partnership with any builder. Expected lease rent is calculated on the basis of prevailing lease rates although when project is ready in 18 months,company may get higher lease rates.For Phase-II, company will undertake development of remaining 2 acres on which also it will build 2.20 lakh s.f. I.T. Park.Worth a punt at present levels.
Btw:This stuffs are heard from sources/my contacts/insiders so may not be that perfectly accurate.Kindly do your own due dilligence before even thinking of having a position in the same.
Saturday, December 24, 2011
Scooters India Ltd:-Buy/sell/hold,growth prospects and recomendation,news and results,target price and analysis,views and outlook
Scripscan:Scooters India Ltd
cmp:28
Code:505141
Story:Located near Lucknow, Scooters India is an integrated automobile plant, engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven 3-wheelers.Company’s plant owes its origin to M/s. Innocenti of Italy from which it bought over the plant and machinery, design, documentation, copyright etc. The company also possesses the world right of the trade name LAMBRETTA / LAMBRO.The company has its own marketing network of Regional Sales Offices all over India, catering to customer’s requirements in the areas of sales and services.Government holds 95.38 per cent in Scooters India and according to the present buzz the Govt is planning to divest its stake in the ailing counter.Government was earlier considering a joint venture with private sector for revival of SIL, which has piled up a loss of Rs 17 crore in the fiscal 2011 but that never materialized.Last year, the ministry had approved a 74% stake sale in the loss-making two- and three-wheeler maker Scooters India.The likes of Mahindra & Mahindra,Atul auto ltd etc was interested in buying the government's stake in the company but there were some issues which were raised by various other ministries and the process was stalled. It is now expected that a fresh look will be taken into the matter.Buyers would be interested in the ailing company as it owns 150 acres of land that may fetch more than its accumulated losses of around 826 crore. The government had infused around 600 crore in the company in 1996 but the move failed to revive the company.Theres hardly any liquidity in the counter as majority of the shares are being held by the Govt.Scooter india may well continue to buzz owing to its assets.Watch out for more action in the counter.
cmp:28
Code:505141
Story:Located near Lucknow, Scooters India is an integrated automobile plant, engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven 3-wheelers.Company’s plant owes its origin to M/s. Innocenti of Italy from which it bought over the plant and machinery, design, documentation, copyright etc. The company also possesses the world right of the trade name LAMBRETTA / LAMBRO.The company has its own marketing network of Regional Sales Offices all over India, catering to customer’s requirements in the areas of sales and services.Government holds 95.38 per cent in Scooters India and according to the present buzz the Govt is planning to divest its stake in the ailing counter.Government was earlier considering a joint venture with private sector for revival of SIL, which has piled up a loss of Rs 17 crore in the fiscal 2011 but that never materialized.Last year, the ministry had approved a 74% stake sale in the loss-making two- and three-wheeler maker Scooters India.The likes of Mahindra & Mahindra,Atul auto ltd etc was interested in buying the government's stake in the company but there were some issues which were raised by various other ministries and the process was stalled. It is now expected that a fresh look will be taken into the matter.Buyers would be interested in the ailing company as it owns 150 acres of land that may fetch more than its accumulated losses of around 826 crore. The government had infused around 600 crore in the company in 1996 but the move failed to revive the company.Theres hardly any liquidity in the counter as majority of the shares are being held by the Govt.Scooter india may well continue to buzz owing to its assets.Watch out for more action in the counter.
Premier Ltd:-Buy/sell/hold,growth prospects and recomendation,news and results,target price and analysis,views and outlook
Scripscan:Premier Ltd
Code:500540
Cmp:60
Breaking news:Doshi group co has equity of 30.37 crores and is engaged in business of Machine Tools and Wind Turbine components For FY11, Company achieved sales of 230cr and Pat of 18.45 crores. Eps stood at 6.07. Company paid 27% dividend.Premier Ltd has surplus land 218 acres outside Mumbai in Dombivali. It is reliably learnt that company has already struck deal to sell this land for Rs 800 crores to Manohar Joshi group called Kohinoor Group. Current marketcap of Premier is less than 200 crores. Announcement about land sale is expected anytime.Premier may use proceeds of land sale for the following purpose:
Special dividend,Reduction of debt (which currently is over 200 crores).Acquire a Machine Tool company in Europe to gain foothold in European market.Invest more in business of Wind Turbine Component, a business which is booming.Its 52 week high was Rs 125.
Code:500540
Cmp:60
Breaking news:Doshi group co has equity of 30.37 crores and is engaged in business of Machine Tools and Wind Turbine components For FY11, Company achieved sales of 230cr and Pat of 18.45 crores. Eps stood at 6.07. Company paid 27% dividend.Premier Ltd has surplus land 218 acres outside Mumbai in Dombivali. It is reliably learnt that company has already struck deal to sell this land for Rs 800 crores to Manohar Joshi group called Kohinoor Group. Current marketcap of Premier is less than 200 crores. Announcement about land sale is expected anytime.Premier may use proceeds of land sale for the following purpose:
Special dividend,Reduction of debt (which currently is over 200 crores).Acquire a Machine Tool company in Europe to gain foothold in European market.Invest more in business of Wind Turbine Component, a business which is booming.Its 52 week high was Rs 125.
Bombay Dyeing & Manufacturing Company Ltd:-Buy/sell/,growth prospects/multibagger,news and results,target price and analysis,views and outlook
Scripscan:Bombay Dyeing & Manufacturing Company Ltd
Code:500020
Cmp:335
Story:Bombay Dyeing owns two mill land properties in Central Mumbai-25 acres in Worli (obtained on a 999 year lease from Mah Govt in 1870s) and 42 acres at Wadala (owned on free-hold basis). In CY06, the company had shifted its textile manufacturing facilities to Ranjangaon near Pune and commence real-estate development at Worli and Wadala. The two properties put together have potential to generate 9.5 million sq ft of saleable area having mix of residential and commercial space.This development of real estate would result in huge profit generation over next 8 years which is not reflected in present valuations of the stock. After touching high of Rs 692, Bombay Dyeing appears a very attraftive buy at current Rs 370/. At an average rate of Rs 18,000 per sq ft, real estate development can generate revenues of nearly Rs 17,000 crores although company may sell Residential space and commercial space may be leased out and not sold.Group's textile and polyester businesses had been making losses since FY06 which , however, turned around in Q4 FY11. Hence, loss-funding from real-estate cashflows has ended.Last major land deal in Mumbai was purchase of 8.40 acre plot from NTC by Indiabulls @ Rs 180 crores per acre. Even if we take Bombay Dyeing land value @ Rs 140 cr per acre, value of land alone works out Rs 9400 crores which gives value of Rs 2300 per share.Bombay Dyeing had received CC to launch 1 mn sq ft residential development in Wadala which was launched in 2010. It has also receievd approval for incentive FSI to provide public parking in Wadala. This project should generate revenues of Rs 1700 cr over FY12-14. It is reliably learnt that company has launched the next phase of 1mn sq ft of residential apartments . These two phases put together should contribute Rs 3600 cr in revenues over FY12-15. This should drive very strong improvement in cash flows. Bombay Dyeing should develop entire developeable area over next 7 years. Assuming average selling realisation of Rs 18,000 per sq ft and average construction cost of Rs 3500 per sq ft and legal/approval/compliance/marketing expenses of Rs 500 per sq ft, PBT of Bombay Dyeing should be in range of Rs 14,000 per sq ft.It is very very difficult to project realistic Revenue and Profit estimates for Bombay Dyeing due to construction period (ranging from 3 years to 5 years), selling estimates (when and how many sq ft is actually sold).Company has a debt of Rs 1600 crores and Textile/Polyster business can be valued at Rs 600 crores (45% discount to Net Assets).Scrip holds tremendous value for long term investors.
Code:500020
Cmp:335
Story:Bombay Dyeing owns two mill land properties in Central Mumbai-25 acres in Worli (obtained on a 999 year lease from Mah Govt in 1870s) and 42 acres at Wadala (owned on free-hold basis). In CY06, the company had shifted its textile manufacturing facilities to Ranjangaon near Pune and commence real-estate development at Worli and Wadala. The two properties put together have potential to generate 9.5 million sq ft of saleable area having mix of residential and commercial space.This development of real estate would result in huge profit generation over next 8 years which is not reflected in present valuations of the stock. After touching high of Rs 692, Bombay Dyeing appears a very attraftive buy at current Rs 370/. At an average rate of Rs 18,000 per sq ft, real estate development can generate revenues of nearly Rs 17,000 crores although company may sell Residential space and commercial space may be leased out and not sold.Group's textile and polyester businesses had been making losses since FY06 which , however, turned around in Q4 FY11. Hence, loss-funding from real-estate cashflows has ended.Last major land deal in Mumbai was purchase of 8.40 acre plot from NTC by Indiabulls @ Rs 180 crores per acre. Even if we take Bombay Dyeing land value @ Rs 140 cr per acre, value of land alone works out Rs 9400 crores which gives value of Rs 2300 per share.Bombay Dyeing had received CC to launch 1 mn sq ft residential development in Wadala which was launched in 2010. It has also receievd approval for incentive FSI to provide public parking in Wadala. This project should generate revenues of Rs 1700 cr over FY12-14. It is reliably learnt that company has launched the next phase of 1mn sq ft of residential apartments . These two phases put together should contribute Rs 3600 cr in revenues over FY12-15. This should drive very strong improvement in cash flows. Bombay Dyeing should develop entire developeable area over next 7 years. Assuming average selling realisation of Rs 18,000 per sq ft and average construction cost of Rs 3500 per sq ft and legal/approval/compliance/marketing expenses of Rs 500 per sq ft, PBT of Bombay Dyeing should be in range of Rs 14,000 per sq ft.It is very very difficult to project realistic Revenue and Profit estimates for Bombay Dyeing due to construction period (ranging from 3 years to 5 years), selling estimates (when and how many sq ft is actually sold).Company has a debt of Rs 1600 crores and Textile/Polyster business can be valued at Rs 600 crores (45% discount to Net Assets).Scrip holds tremendous value for long term investors.
Cable Corporation of India Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger
Scripscan:Cable Corporation of India Ltd
cmp:20
Code:500077
Story:Cable Corporation of India is an interesting play. At one time, about five-six years back they use to be a blue chip company with a good market share of about 20% plus. They are only into the power cable and in fact they have the licensee of Siemens brand to market the power cable in India. The company earlier had their manufacturing facility at Borivali in Mumbai, apart from that they have manufacturing facility in Nasik and one in Sinnar, a suburb of Nasik.The company has moved all their manufacturing facility from Borivali to Nasik and Sinnar plant. The 22 acre of land which is now at Borivali is being developed by the company and the second phase has already been launched. The total saleable area which will be available to the company will be close to about three million square feet and that is likely to get developed in next five-seven years time.However, the part flows of the property income have started getting reflected in the financial results of the company. If we see FY11, they have booked property income of about Rs 55 crore and that has resulted into the PAT reported by the company. They also have been started getting good and lucrative orders from the state electricity boards. Hence, their power cable business is likely to get vastly turnaround.The debt of the company is not very high, the market cap of the company is close to about Rs 160 crore and the net present value of the property is close to about Rs 1,500 to Rs 1,800 crore and is likely to take place in five to six years time. Over the last 18 months, the company earlier issued optionally convertible preference shares, which were all converted into the equity of the company and hence, promoters are holding close to 75% stake and apart from that even the 25% float which is held by some of them are seen as associates or maybe, the strategic investor kind of people holding close to about 12-15% stock in the company. Therefore, there is a low float with a market cap of Rs 180 crore, if you have a float of even 8-10% that translates to a market cap of less than Rs 20 crore.Taking all this revival on the core business, apart from the huge cash flow likely to accrue to the company over next two-three years time makes the stock quite attractive and I won’t be surprised to see a price of Rs 40, in next 18 months time on the stock.
Source:SPT
cmp:20
Code:500077
Story:Cable Corporation of India is an interesting play. At one time, about five-six years back they use to be a blue chip company with a good market share of about 20% plus. They are only into the power cable and in fact they have the licensee of Siemens brand to market the power cable in India. The company earlier had their manufacturing facility at Borivali in Mumbai, apart from that they have manufacturing facility in Nasik and one in Sinnar, a suburb of Nasik.The company has moved all their manufacturing facility from Borivali to Nasik and Sinnar plant. The 22 acre of land which is now at Borivali is being developed by the company and the second phase has already been launched. The total saleable area which will be available to the company will be close to about three million square feet and that is likely to get developed in next five-seven years time.However, the part flows of the property income have started getting reflected in the financial results of the company. If we see FY11, they have booked property income of about Rs 55 crore and that has resulted into the PAT reported by the company. They also have been started getting good and lucrative orders from the state electricity boards. Hence, their power cable business is likely to get vastly turnaround.The debt of the company is not very high, the market cap of the company is close to about Rs 160 crore and the net present value of the property is close to about Rs 1,500 to Rs 1,800 crore and is likely to take place in five to six years time. Over the last 18 months, the company earlier issued optionally convertible preference shares, which were all converted into the equity of the company and hence, promoters are holding close to 75% stake and apart from that even the 25% float which is held by some of them are seen as associates or maybe, the strategic investor kind of people holding close to about 12-15% stock in the company. Therefore, there is a low float with a market cap of Rs 180 crore, if you have a float of even 8-10% that translates to a market cap of less than Rs 20 crore.Taking all this revival on the core business, apart from the huge cash flow likely to accrue to the company over next two-three years time makes the stock quite attractive and I won’t be surprised to see a price of Rs 40, in next 18 months time on the stock.
Source:SPT
Saturday, December 10, 2011
Delton Cables Ltd:Buy/sell/hold,growth prospects and recomendation,news and results,target price and analysis,views and outlook
Scripscan:Delton Cables Ltd
Code:504240
Cmp:40
Introduction: This Delhi based company is one the earliest entrant in power cable business. Although company has been growing only steadily despite industry growing tremendously and competitors also grew much bigger. Its financial performance has been reasonable:
Expansion:The company has set up a Division for the manufacture of Switchgears at Noida.This will enhance the value of the brand 'Delton' and add to the turnover and profitability of the company.It also plans to expand in the segment of power cables and RF cables.On its core business, scrip is reasonably priced. However, company is sitting on massive surplus assets which, as and well, utilized/sold will unlock huge value for its shareholders.
Land play:In Dharuhera, Haryana (Near Hero Honda factory), its plant is situated on approx 12 acre land. At this place, company has surplus land approx 48-52 crs. Prevailing land rates here are 9-10 cr per acre. Thus, market value of this surplus land should be nearly Rs 450-500 crs.It has another factory situated in Faridabad over 2 acre plot. This is prime location and going rates are approx 30 cr per acre.Although, at present, factory is running here. However, looking at huge land value, in future promoters may decide to relocate this factory which can fetch more than 60 cr cash to the company.No of shares are just 28,80,000 and value of surplus land works out to Rs 1800-1900 per share as against CMP of Rs 40. Floating stock is low due to high promoter holding. Company has also got some land in Delhi.
Conclusion:In future, some big builders are bound to offer highly attractive valuations for company's surplus land which promoters may find difficult to refuse.Also its a cashrich company with reserves to the tune of 22crs.Even a liberal bonus can be there on the offing.Delton cable is one of the scrips which is qoting at a significant discount to its land value.Even if we give the counter 1/4th of the total land value the price comes at 450rs.Again like my other scrips I give the counter to you members to value it on your own ways.
Code:504240
Cmp:40
Introduction: This Delhi based company is one the earliest entrant in power cable business. Although company has been growing only steadily despite industry growing tremendously and competitors also grew much bigger. Its financial performance has been reasonable:
Expansion:The company has set up a Division for the manufacture of Switchgears at Noida.This will enhance the value of the brand 'Delton' and add to the turnover and profitability of the company.It also plans to expand in the segment of power cables and RF cables.On its core business, scrip is reasonably priced. However, company is sitting on massive surplus assets which, as and well, utilized/sold will unlock huge value for its shareholders.
Land play:In Dharuhera, Haryana (Near Hero Honda factory), its plant is situated on approx 12 acre land. At this place, company has surplus land approx 48-52 crs. Prevailing land rates here are 9-10 cr per acre. Thus, market value of this surplus land should be nearly Rs 450-500 crs.It has another factory situated in Faridabad over 2 acre plot. This is prime location and going rates are approx 30 cr per acre.Although, at present, factory is running here. However, looking at huge land value, in future promoters may decide to relocate this factory which can fetch more than 60 cr cash to the company.No of shares are just 28,80,000 and value of surplus land works out to Rs 1800-1900 per share as against CMP of Rs 40. Floating stock is low due to high promoter holding. Company has also got some land in Delhi.
Conclusion:In future, some big builders are bound to offer highly attractive valuations for company's surplus land which promoters may find difficult to refuse.Also its a cashrich company with reserves to the tune of 22crs.Even a liberal bonus can be there on the offing.Delton cable is one of the scrips which is qoting at a significant discount to its land value.Even if we give the counter 1/4th of the total land value the price comes at 450rs.Again like my other scrips I give the counter to you members to value it on your own ways.
BDH Industries Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook
Scripscan:BDH Industries Ltd
cmp:15
Code:524828
Story:BDH Industry is a listed co with equity of Rs 5.94 Crore i.e 59.4 lac shares of rs 10 each and market cap is just Rs 8 Crores. BDH stands out for Bombay Drug House. Co's plant is located on 2.7 lac sq ft at Kandivali east adjoining to Big Bazaar in the prime location of Kandivali.The FSI there is 2 which give saleable area of 5.4 lac sq ft on which 30% loading is permissible and feasible. Thus total saleable area works out to 7 lac sq ft and the existing market rate is Rs 5000 per sq ft. BDH has a manufacturing area spread over 42,500 square feet and meets WHO GMP standards and very strict in-house specifications though the entire space is 270,000 sq ft.Co owns land and development cost is estimated at Rs 2000 per sq ft which leaves post tax profit ( 30% assumed) of Rs 2100 per sq ft. the clear tax free profit could be Rs 147 Crore on equity of Rs 6 Crores offering earnings of Rs 240 per share.Shifting cost is not in excess of Rs 15 Crore which hardly matters.If talks were to be believed.One of the leading Mumbai Builders has approached the co with a outright sell of the said land for Rs 125 Crore which was refused by the co.In fact,rumuors were it was offering Rs 125 Crore for land alone is possible for the development of big MALL with collaboration with a leading Construction Co in Dubai could see realization rising to even Rs 7500 per sq ft.Since the property is adjacent to Big Bazzar, chances of Pentaloon or RIL stepping in is not ruled out.If any of the big players enters then the realizable net profit after tax could be as high as Rs 300 Crore.So if it vindicates all these then BDH is all set to make history in the bourses.
cmp:15
Code:524828
Story:BDH Industry is a listed co with equity of Rs 5.94 Crore i.e 59.4 lac shares of rs 10 each and market cap is just Rs 8 Crores. BDH stands out for Bombay Drug House. Co's plant is located on 2.7 lac sq ft at Kandivali east adjoining to Big Bazaar in the prime location of Kandivali.The FSI there is 2 which give saleable area of 5.4 lac sq ft on which 30% loading is permissible and feasible. Thus total saleable area works out to 7 lac sq ft and the existing market rate is Rs 5000 per sq ft. BDH has a manufacturing area spread over 42,500 square feet and meets WHO GMP standards and very strict in-house specifications though the entire space is 270,000 sq ft.Co owns land and development cost is estimated at Rs 2000 per sq ft which leaves post tax profit ( 30% assumed) of Rs 2100 per sq ft. the clear tax free profit could be Rs 147 Crore on equity of Rs 6 Crores offering earnings of Rs 240 per share.Shifting cost is not in excess of Rs 15 Crore which hardly matters.If talks were to be believed.One of the leading Mumbai Builders has approached the co with a outright sell of the said land for Rs 125 Crore which was refused by the co.In fact,rumuors were it was offering Rs 125 Crore for land alone is possible for the development of big MALL with collaboration with a leading Construction Co in Dubai could see realization rising to even Rs 7500 per sq ft.Since the property is adjacent to Big Bazzar, chances of Pentaloon or RIL stepping in is not ruled out.If any of the big players enters then the realizable net profit after tax could be as high as Rs 300 Crore.So if it vindicates all these then BDH is all set to make history in the bourses.
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