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.
Saturday, December 24, 2011
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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