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Industry Sector: Consumer Durables
CMP: Rs. 159; Price Target: Rs. 200 in 6-12 months; Downside: Can fall to Rs.115
My Assessment:
Buy on dips below 160; Sell on flare ups above 180 Or Hold for long term if delisting doesn't happen.
Reasons to Buy (Opportunities):
. The market cap of less than 200 Cr, doesnt reflect value of land holdings
. News is out on large scale commercial development of company's land in Bangalore
. Foray into Retail has started kicking in with benefits
. High 72% promoter holding; trusted promoter group known for ethical behaviour
. Trusted brand with quality products range
. Current valuation of less than 9 P/E and less than 1 year annual sales value reflects potential for re-rating even without considering land value.
. Decent and consistent dividend track record
Reasons to Stay Away (Risks):
. Company is considering de-listing, it is unclear on their approach, it could be positive or negative for small investors - need to watchout for news on this
. Being a small cap means very high volatility in share price
Research:
3 comments:
Did you really make some money on this co? ;-)
yes. did make some when it was oscillating between 100 levels and 149; now bought some at 93 and booked profit at 99. now looking to add more if it falls below 100.
i'm bullish on long term story - given their brand; retail presence; innovation in product lines & real estate holding over all enterprise value is certainly many times over their mkt cap. -ve sides are not sure hw much to rely on the promoter group besides the price volatility due to small floating stock. tail piece, recently teh promoter group bought some at 130 levels thats an additional indicator of cheap valuation.
:)it feels good :)
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