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.
