JLL- Subcribe for Short to Medium term!!!
Issue Period November 22, 2007 to November 27, 2007
Face Value Rs. 5/-
Price Range Rs 620 TO Rs 690
Min Lot 10 Shares
Grade Good
Recommendation Subcribe
Company Info
Jyothy Laboratories has opened for subscription with an initial public offering (IPO) of 44.30 lakh shares of Rs 5 each at a price band between Rs 620 and Rs 690 per equity share.
The company will raise Rs 274 at lower price band and Rs 305.6 crore at higher end of price band. The issue will close on November 27, 2007.
Jyothy Laboratories (JLL) is an FMCG company making a range of branded products, including fabric whiteners, mosquito repellents, dish-washing soaps, soaps and incense. Its key brands are Ujala, Maxo, Exo, Jeeva and Maya.
Investment summary
Ujala is a well-known brand of fabric whitener, with dominant market share of approximately 72% in the category
a)Local presence and wide distribution reach
b)Targets the rural market
c)Entering into new joint-venture initiatives
Risks and concerns
a)Heavily depend on two biggest brands, Ujala and Maxo which contribute 43.6% and 35.4% of its total sales respectively (as on 30 June 2007).
b)Dependence on outsourced production through third parties. Any disputes or disagreements may affect their business.
c)The company is susceptible to seasonal variations in demand for its products.
Valuations attractive in comparison to the peer group
At the issue price of Rs 620-690, JLL commands an inexpensive P/E (on relative basis) of 18.6x-20.7x based on FY07 EPS of Rs 33.3. The price/book ratio of 3.4x at Rs 690 is also at steep discount to peers. The company is well-placed for healthy growth, given its well-established brand equity, leadership in the fabric whitener segment and strategic alliances.
Premium on Listing - 50-60%
November 26, 2007
November 17, 2007
WWIL - BUY till next DIWALI !!!
Buy Wire & Wireless limited @ cmp 45.40 for more than 100% returns by next year diwali.
NSECODE WWILCMP-45.30
Target1-89
Target2-119
Buy and forget WWIL
watch your wealth soar by 150% in next 12 months.CMP WWIL 56.75.
WWIL has negative EPS.Traded volumes of WWIL has increased by 80% over past 10-12 days.
This is turnaround story.Financials of the company will improve after two quarters.Year 2008 will be the year for media and entertainment stocks.Fiis,HNis & QIB will race to buy media and entertainment stocks.
Expect PE placment in these stocks.TV18,Balaji Tele,Zee News,TV Today,Adlabs,WWIL,Dishtv,Inox,PVR,UTV,GBN,ENIL are the few stocks which will be center of attraction.Big upmove in these stocks is expected.
What are the fundamentals?
Burgeoning middle class family(400-450 million)in India have more spending power.Higher salary,70% population below 38 yr of age throws up once in life time opportunity for enterprenuers in media/entertainment sector.Companies are ready to tap this opportunity.As an investor are you ready to tap this opportunity? Again we are the first analyst in India to write about this sector.Invest with strategy and take advantage of first mover.
Study the basic fundamentals and see the unseen.
NSECODE WWILCMP-45.30
Target1-89
Target2-119
Buy and forget WWIL
watch your wealth soar by 150% in next 12 months.CMP WWIL 56.75.
WWIL has negative EPS.Traded volumes of WWIL has increased by 80% over past 10-12 days.
This is turnaround story.Financials of the company will improve after two quarters.Year 2008 will be the year for media and entertainment stocks.Fiis,HNis & QIB will race to buy media and entertainment stocks.
Expect PE placment in these stocks.TV18,Balaji Tele,Zee News,TV Today,Adlabs,WWIL,Dishtv,Inox,PVR,UTV,GBN,ENIL are the few stocks which will be center of attraction.Big upmove in these stocks is expected.
What are the fundamentals?
Burgeoning middle class family(400-450 million)in India have more spending power.Higher salary,70% population below 38 yr of age throws up once in life time opportunity for enterprenuers in media/entertainment sector.Companies are ready to tap this opportunity.As an investor are you ready to tap this opportunity? Again we are the first analyst in India to write about this sector.Invest with strategy and take advantage of first mover.
Study the basic fundamentals and see the unseen.
Why is Essar Steel buzzing?
Essar Steel is stuck in circuit, for the second time consecutively, said analysts. It is up 54% in the last one week and there has been quite a rally in the stock, reports CNBC-TV18
There are a few positives that could be pushing the stock upward. The steel cycle is going robust and prices are expected to go up at the beginning of next year. There could be a price increase of about USD 25-40 in the first quarter of next year.
Essar Steel has great plans of expansion. Its capacities could go up from 5-9 million tonne by June 2009. The shares are to be delisted soon. The promoters hold around 87% of the shares. They had made an offer for the remaining 12.97% of the shares. The discovered price was at Rs 48 per share and now it is at Rs 70. They got the requisite amount and the shares will be delisted in the near future.
On a PE basis, with the run up, it is trading 11.7 times on an FY08 basis and 15-16 times on a trailing basis versus Tata Steel, which is trading at 9% or nine times FY08 basis and JSW Steel, which is closing thereabouts at just about nine times FY08 basis.
2007-11-16 16:00:09 Source : moneycontrol
There are a few positives that could be pushing the stock upward. The steel cycle is going robust and prices are expected to go up at the beginning of next year. There could be a price increase of about USD 25-40 in the first quarter of next year.
Essar Steel has great plans of expansion. Its capacities could go up from 5-9 million tonne by June 2009. The shares are to be delisted soon. The promoters hold around 87% of the shares. They had made an offer for the remaining 12.97% of the shares. The discovered price was at Rs 48 per share and now it is at Rs 70. They got the requisite amount and the shares will be delisted in the near future.
On a PE basis, with the run up, it is trading 11.7 times on an FY08 basis and 15-16 times on a trailing basis versus Tata Steel, which is trading at 9% or nine times FY08 basis and JSW Steel, which is closing thereabouts at just about nine times FY08 basis.
2007-11-16 16:00:09 Source : moneycontrol
EDELWEISS CAPITAL LIMITED -IPO Prospects
EDL - Subcribe for Short to Medium term!!!
Issue Period November 15, 2007 to November 20, 2007
Face Value Rs. 5/-
Price Range Rs 725 TO Rs 825
Min Lot 8 Shares
Grade Very Good
Recommendation Subcribe
Company Info
Edelweiss Capital, a diversified financial services company, has opened for subscription with its initial public offering (IPO) of 8,386,147 equity shares of Rs 5 each for cash, at a price to be decided through a 100% book building process.
The issue will close close on November 20, 2007. The price band is between Rs 725 and Rs 825 per equity share of face value Rs 5.
Valuation
Investment positives
Scaling up the investment banking business
During FY07, the income from investment banking grew by 2.6x to Rs 697.5 million. Going ahead we believe Edelweiss has lot of room to scale up considering the huge opportunity in the I-Banking space.
Other business segments to scale-up
Other business segments like insurance broking and asset management are too small compared to investment banking and institutional broking businesses. With the management’s focus to grow its asset management and general insurance businesses, fee income will get a boost.
Investment Concerns
High dependence on capital market
About 58% of the company’s income comes from institutional broking and investment banking businesses, followed by 31% from treasury operations. Thus, any downturn faced by the securities market would impact profitability of the company.
Non-capital market business too small for sustenance
Other business segments like insurance broking and asset management are comparatively smaller than institutional broking and investment banking businesses. With any downturn in the capital market, the company’s income streams will be impacted, and asset management and insurance broking won’t be able to support revenue growth.
Valuation–wise, the shares are offered at a competitive price compared to peers. With an established platform in institutional broking, increasing opportunities in investment banking and presence in high growth business segments like insurance and asset management.
Premium on Listing - 80 -100%*
Issue Period November 15, 2007 to November 20, 2007
Face Value Rs. 5/-
Price Range Rs 725 TO Rs 825
Min Lot 8 Shares
Grade Very Good
Recommendation Subcribe
Company Info
Edelweiss Capital, a diversified financial services company, has opened for subscription with its initial public offering (IPO) of 8,386,147 equity shares of Rs 5 each for cash, at a price to be decided through a 100% book building process.
The issue will close close on November 20, 2007. The price band is between Rs 725 and Rs 825 per equity share of face value Rs 5.
Valuation
Investment positives
Scaling up the investment banking business
During FY07, the income from investment banking grew by 2.6x to Rs 697.5 million. Going ahead we believe Edelweiss has lot of room to scale up considering the huge opportunity in the I-Banking space.
Other business segments to scale-up
Other business segments like insurance broking and asset management are too small compared to investment banking and institutional broking businesses. With the management’s focus to grow its asset management and general insurance businesses, fee income will get a boost.
Investment Concerns
High dependence on capital market
About 58% of the company’s income comes from institutional broking and investment banking businesses, followed by 31% from treasury operations. Thus, any downturn faced by the securities market would impact profitability of the company.
Non-capital market business too small for sustenance
Other business segments like insurance broking and asset management are comparatively smaller than institutional broking and investment banking businesses. With any downturn in the capital market, the company’s income streams will be impacted, and asset management and insurance broking won’t be able to support revenue growth.
Valuation–wise, the shares are offered at a competitive price compared to peers. With an established platform in institutional broking, increasing opportunities in investment banking and presence in high growth business segments like insurance and asset management.
Premium on Listing - 80 -100%*
November 16, 2007
Indian Govt may sell PSU stock
The government should take advantage of the current momentum in the stock market to sell shares in the already listed PSUs at a good premium. There are many PSUs such as the NTPC where the government has a large holding, and more equity can be divested without inviting any controversy.
The appetite for shares of PSUs with convincing growth potential is very strong, government ownership notwithstanding. That the 43-scrip BSEPSU index outperformed the sensex recently bears that out. Besides, the price returns on shares of newly listed power PSUs — Power Finance Corporation and Power Grid — have already served to whet demand for shares of other public enterprises. For starters, the government should consider further divestment in PSUs such as MMTC, NMDC, Neyveli Lignite, National Aluminium, SAIL and Hindustan Copper.
Most of these PSUs are 85%-99% owned by the government. Besides yielding good returns for the government, follow-on offers from listed PSUs would also increase the floating stock of these companies and thereby improve liquidity and reduce volatility in price movement. Much of the sharp rise in stock prices over the past two months could be a case of too much money chasing too few shares. At least, that can be said of MMTC and NMDC.
The MMTC share price rose by almost Rs 2,000 every day over the past one month. That this is due to lack of sufficient floating stock is borne out by the fact that only 0.67% shares (or 3.34 lakh shares) of MMTC and 1.62% (21.35 lakh shares) of NMDC are held by institutional and retail investors. The sale of shares can help the government to raise resources for various social sector projects. Of course, there could be some cases where the company too needs to raise funds for its expansion, and there the government will have to ride piggyback on a public offer from the company.
The strategy for each company can be considered individually. However, the government as a promoter must move decisively to benefit from the good valuations and also share with the public the wealth created by PSUs
The appetite for shares of PSUs with convincing growth potential is very strong, government ownership notwithstanding. That the 43-scrip BSEPSU index outperformed the sensex recently bears that out. Besides, the price returns on shares of newly listed power PSUs — Power Finance Corporation and Power Grid — have already served to whet demand for shares of other public enterprises. For starters, the government should consider further divestment in PSUs such as MMTC, NMDC, Neyveli Lignite, National Aluminium, SAIL and Hindustan Copper.
Most of these PSUs are 85%-99% owned by the government. Besides yielding good returns for the government, follow-on offers from listed PSUs would also increase the floating stock of these companies and thereby improve liquidity and reduce volatility in price movement. Much of the sharp rise in stock prices over the past two months could be a case of too much money chasing too few shares. At least, that can be said of MMTC and NMDC.
The MMTC share price rose by almost Rs 2,000 every day over the past one month. That this is due to lack of sufficient floating stock is borne out by the fact that only 0.67% shares (or 3.34 lakh shares) of MMTC and 1.62% (21.35 lakh shares) of NMDC are held by institutional and retail investors. The sale of shares can help the government to raise resources for various social sector projects. Of course, there could be some cases where the company too needs to raise funds for its expansion, and there the government will have to ride piggyback on a public offer from the company.
The strategy for each company can be considered individually. However, the government as a promoter must move decisively to benefit from the good valuations and also share with the public the wealth created by PSUs
NTPC - BUY BUY BUY
The country's largest power generating company NTPC has entered into a joint venture (JV) agreement with Indian Railways to set up a 1,000 MW power plant in Nabinagar in Bihar at a cost of Rs 1,605 crore.A joint venture company - Bharatiya Rail Bijlee Company - would be set up for the purpose with NTPC having 74% stake and the Railways having 26% stake.
NTPC would put in Rs 1,188 crore of capital and the Railways would invest Rs 417 crore in the Nabinagar plant. The plant is expected to commence operations after 30 months from receipt of approval of investment by both parties, which is likely to come by December-end. As per the Cabinet approval, 90% of the power from Nabinagar plant will be supplied to railways and 10% to others and this will primarily be a captive power plant for the Railways.
The average cost of generation from this plant will be Rs 2.13 per unit. The railways expects to save up to Rs 600 crore annually after paying wheeling and transmission charges, reducing operating expenses by 1-2%. The average annual requirement of the Railways is 2,000 MW.The Railways, at present, spends about Rs 5,700 crore a year towards electrical energy for traction and non-traction purposes.
NTPC would put in Rs 1,188 crore of capital and the Railways would invest Rs 417 crore in the Nabinagar plant. The plant is expected to commence operations after 30 months from receipt of approval of investment by both parties, which is likely to come by December-end. As per the Cabinet approval, 90% of the power from Nabinagar plant will be supplied to railways and 10% to others and this will primarily be a captive power plant for the Railways.
The average cost of generation from this plant will be Rs 2.13 per unit. The railways expects to save up to Rs 600 crore annually after paying wheeling and transmission charges, reducing operating expenses by 1-2%. The average annual requirement of the Railways is 2,000 MW.The Railways, at present, spends about Rs 5,700 crore a year towards electrical energy for traction and non-traction purposes.
The government may infuse about Rs 10,000 crore as equity capital in nationalised banks in addition to an identical amount in the country's largest le
The government may infuse about Rs 10,000 crore as equity capital in nationalised banks in addition to an identical amount in the country's largest lender, State Bank of India (SBI).
Nationalised banks with the government holding closer to the floor of 51 per cent are likely to receive the capital infusion support.
"About Rs 10,000 crore will be enough to infuse capital in public sector banks (other than SBI) as only some of them are closer to the threshold limit of 51 per cent," a government official said.
According to an internal estimate, ten nationalised banks with less than 60 per cent government stake would have to raise Rs 14,700 crore of equity to meet the additional capital requirements for growth as well as to meet more stringent capital allocation under the revised Basel-II norms.
Bank of Baroda would have to meet the new Basel-II capital norms from March 2008 and the others from March 2009 onwards.
SBI would be raising Rs 16,700 crore through a rights issue in early 2008.
The government, which owns a controlling 59.73 per cent stake in the bank, would invest Rs 10,000 crore via the rights issue to maintain its stake in the bank at the current level, the government official said.
SBI would receive another Rs 6,700 crore if all its non-government shareholders subscribe to their entitlements in the rights issue.
"The Union Cabinet is likely to take up the rights issue proposal at its meeting next week," the official said, adding that "the government may issue tradeable bonds worth Rs 10,000 crore to SBI to subscribe to the rights issue."
Out of the total banking business in the country, the share of all public sector banks is 74 per cent, while SBI and its seven associate banks command about 25 per cent share.
BEST INVESTMENT PICKS IN PSU BANK STOCKS :
Punjab National Bank -- Target -- 750 +
Canara Bank -- Target -- 375 +
Bank Of Baroda -- Target -- 485 +
Some Small Cap PSU Banks :
Indian Overseas Bank -- Target -- 185 +
Bank Of Maharashtra -- Target -- 110 +Dena Bank -- Target -- 105 +
Nationalised banks with the government holding closer to the floor of 51 per cent are likely to receive the capital infusion support.
"About Rs 10,000 crore will be enough to infuse capital in public sector banks (other than SBI) as only some of them are closer to the threshold limit of 51 per cent," a government official said.
According to an internal estimate, ten nationalised banks with less than 60 per cent government stake would have to raise Rs 14,700 crore of equity to meet the additional capital requirements for growth as well as to meet more stringent capital allocation under the revised Basel-II norms.
Bank of Baroda would have to meet the new Basel-II capital norms from March 2008 and the others from March 2009 onwards.
SBI would be raising Rs 16,700 crore through a rights issue in early 2008.
The government, which owns a controlling 59.73 per cent stake in the bank, would invest Rs 10,000 crore via the rights issue to maintain its stake in the bank at the current level, the government official said.
SBI would receive another Rs 6,700 crore if all its non-government shareholders subscribe to their entitlements in the rights issue.
"The Union Cabinet is likely to take up the rights issue proposal at its meeting next week," the official said, adding that "the government may issue tradeable bonds worth Rs 10,000 crore to SBI to subscribe to the rights issue."
Out of the total banking business in the country, the share of all public sector banks is 74 per cent, while SBI and its seven associate banks command about 25 per cent share.
BEST INVESTMENT PICKS IN PSU BANK STOCKS :
Punjab National Bank -- Target -- 750 +
Canara Bank -- Target -- 375 +
Bank Of Baroda -- Target -- 485 +
Some Small Cap PSU Banks :
Indian Overseas Bank -- Target -- 185 +
Bank Of Maharashtra -- Target -- 110 +Dena Bank -- Target -- 105 +
Grey Market premium for IPO's - Nov /Dec
Reliance Power 054 to 056
Mundra Port & SEZ 500 to 525
Empee Distilleries 160 to 165
Edelweiss 800 to 825
Varun Ind. 042 to 045
Religare Enterprises 325 to 350
Barak Valley 017 to 019
Rathi Bars 003 to 004
Allied Computers 014 to 016
SVPCL 003 to 005
November 12, 2007
Diwali Picks
Creating Reservoirs for next Diwali!!!
Sno Stocks CMP Targets
1 Bharat Forge 349 395
2 Guj Apollo 279 350
3 IDBI 153 195
4 MIC Electronics 517 725
5 Orbit Corp 658 1000+
6 Patel Engg. 725 1000+
Sno Stocks CMP Targets
1 Bharat Forge 349 395
2 Guj Apollo 279 350
3 IDBI 153 195
4 MIC Electronics 517 725
5 Orbit Corp 658 1000+
6 Patel Engg. 725 1000+
November 5, 2007
Mundra Port - IPO Prospects
MPSEZ - Apply for 3 yrs time frame !
Issue Date :Nov 1- Nov 7
Issue Price :400 Rs - 440 Rs
Min. Order Quantity :15 Shares
Grade :Good
Recommendation :Subscribe
Mundra Port and Special Economic Zone, developer and operator of the Mundra Port, one of the leading non-captive private sector ports in India based on volume of cargo during fiscal 2007 is open for subscription with its initial public offering (IPO) of 40,250,000 equity shares of Rs 10 each for cash, at a price to be decided through a 100% book building process.
Investment summary
1. Port located at strategic natural location.
2. Well positioned to cater northern interiors of India.
3. Access to major modes of transport.
4. 15,665 acres of land bank with infrastructure in place to develop a port.
5. Fiscal advantages of a developing a SEZ.
Risks and concerns
1. Highly regulated sector.
2. Huge capital investment and long gestation projects.
3. Major revenue stream through few clients.
Strong volume growth to drive earnings growth
MPSEZL, a multi product SEZ, is well positioned to serve northern regions of landlocked India. With approximately 50% of the country’s commodity trade arising from the region, MPSEZL is well poised to garner robust growth. At the price band of Rs400-440 the stock would be trading at PE of 85.1x - 93.6x at its FY07 post issue diluted EPS of Rs4.8.
Over the last three years, the company registered a CAGR of 51.2% in its topline. We expect the company to maintain the growth rate and operating margins in future. We recommend to Subscribe the issue
Recommendation
Mundra Port and SEZ is the developer and operator of the Mundra Port, one of the leading non-captive private sector ports in India based on volume of cargo during fiscal 2007. MPSEZ is one of the first portbased multi-product SEZs in India. Also its locational advantage with a presence in the northwest coast of India and its connectivity by rail, road and pipeline to the transportation network of India would make the product delivery reasonable and efficient.
Also the company has a huge land bank for development following its mergers with ACL, MSEZ and APL which would lead to higher volumes of cargo in the port and various growth opportunities for the company. On the valuations side the company seems to be reasonably priced due to the lack of listed peers of the company. We recommend our investors to Subscribe to the issue
Issue Date :Nov 1- Nov 7
Issue Price :400 Rs - 440 Rs
Min. Order Quantity :15 Shares
Grade :Good
Recommendation :Subscribe
Mundra Port and Special Economic Zone, developer and operator of the Mundra Port, one of the leading non-captive private sector ports in India based on volume of cargo during fiscal 2007 is open for subscription with its initial public offering (IPO) of 40,250,000 equity shares of Rs 10 each for cash, at a price to be decided through a 100% book building process.
Investment summary
1. Port located at strategic natural location.
2. Well positioned to cater northern interiors of India.
3. Access to major modes of transport.
4. 15,665 acres of land bank with infrastructure in place to develop a port.
5. Fiscal advantages of a developing a SEZ.
Risks and concerns
1. Highly regulated sector.
2. Huge capital investment and long gestation projects.
3. Major revenue stream through few clients.
Strong volume growth to drive earnings growth
MPSEZL, a multi product SEZ, is well positioned to serve northern regions of landlocked India. With approximately 50% of the country’s commodity trade arising from the region, MPSEZL is well poised to garner robust growth. At the price band of Rs400-440 the stock would be trading at PE of 85.1x - 93.6x at its FY07 post issue diluted EPS of Rs4.8.
Over the last three years, the company registered a CAGR of 51.2% in its topline. We expect the company to maintain the growth rate and operating margins in future. We recommend to Subscribe the issue
Recommendation
Mundra Port and SEZ is the developer and operator of the Mundra Port, one of the leading non-captive private sector ports in India based on volume of cargo during fiscal 2007. MPSEZ is one of the first portbased multi-product SEZs in India. Also its locational advantage with a presence in the northwest coast of India and its connectivity by rail, road and pipeline to the transportation network of India would make the product delivery reasonable and efficient.
Also the company has a huge land bank for development following its mergers with ACL, MSEZ and APL which would lead to higher volumes of cargo in the port and various growth opportunities for the company. On the valuations side the company seems to be reasonably priced due to the lack of listed peers of the company. We recommend our investors to Subscribe to the issue
EMPEE DISTILLERIES LIMITED - IPO Prospects
EDL- Get ready for takover!!!
Issue Date :Nov 1- Nov 6
Issue Price :350 Rs - 400 Rs
Min. Order Quantity :15 Shares
Grade :Average
Recommendation :Subscribe
Company Info
Manufacturing of Indian-made foreign liquor (IMFL). Their Manufacturing unit Facilities are in
1) Mevaloorkuppam, in Tamil Nadu,
2) NIDA, Palakkad district, in Kerala.
Kerla and Tamilnadu are government controlled markets. In both the cases the company works through the government agencies and solely a price taker and heavily dependent on government policy
Objective of the Issue
1) Entry in AP & Karnataka market by setting up a 60 kilo litres per day (KLPD) grain-based distillery unit at Nellore district in AP.
2) Setting up blending and bottling IMFL plant (having a capacity of 0.70 lakh cases per month) at Nellore district in AP
3) Setting up a 7.5 MW bio-mass power plant and expansion of its existing distillery plant by increasing capacity from 3.20 lakh cases to 5 lakh cases per month. (Capacity utilization of 100%).
4) Increasing the capacity of its ENA plant from 20KLPD to 70 KLPD.
5) Relocation of unit to Karnataka.
6) Developing 2 lakh sq.ft residential space in Mevalorkuppam in Tamilnadu.
Valuation
The company is valued at around 41 to 47 times its FY07 earnings.
Taking into account the entry into new markets and windmill power generation though on a small scale will gradually add value to the company. Company may further get carbon credits which we are not discounting as on date.
The real estate foray will be the real bonus in the times to come. The company seems serious about this business and if it goes through there will be a phenomenal rise in bottomline in FY2010. The profit per square foot is estimated at Rs 2000.
The company looks good as a takeover target for UB group.
Issue Date :Nov 1- Nov 6
Issue Price :350 Rs - 400 Rs
Min. Order Quantity :15 Shares
Grade :Average
Recommendation :Subscribe
Company Info
Manufacturing of Indian-made foreign liquor (IMFL). Their Manufacturing unit Facilities are in
1) Mevaloorkuppam, in Tamil Nadu,
2) NIDA, Palakkad district, in Kerala.
Kerla and Tamilnadu are government controlled markets. In both the cases the company works through the government agencies and solely a price taker and heavily dependent on government policy
Objective of the Issue
1) Entry in AP & Karnataka market by setting up a 60 kilo litres per day (KLPD) grain-based distillery unit at Nellore district in AP.
2) Setting up blending and bottling IMFL plant (having a capacity of 0.70 lakh cases per month) at Nellore district in AP
3) Setting up a 7.5 MW bio-mass power plant and expansion of its existing distillery plant by increasing capacity from 3.20 lakh cases to 5 lakh cases per month. (Capacity utilization of 100%).
4) Increasing the capacity of its ENA plant from 20KLPD to 70 KLPD.
5) Relocation of unit to Karnataka.
6) Developing 2 lakh sq.ft residential space in Mevalorkuppam in Tamilnadu.
Valuation
The company is valued at around 41 to 47 times its FY07 earnings.
Taking into account the entry into new markets and windmill power generation though on a small scale will gradually add value to the company. Company may further get carbon credits which we are not discounting as on date.
The real estate foray will be the real bonus in the times to come. The company seems serious about this business and if it goes through there will be a phenomenal rise in bottomline in FY2010. The profit per square foot is estimated at Rs 2000.
The company looks good as a takeover target for UB group.
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