I
had written on Alfred Herbert (India) Ltd about 22 months back. Here’s the link
to the post :
The
stock price has hardly moved during this period. There have, however, been 3
developments:
Development
No.1:
Real Estate
developer Brigade Enterprises & the Government of Singapore Investment
Corporation jointly bought a piece of
prime land admeasuring 9.5 acres in Bangalore's Whitefield from HUL for 125
crore.
The bid for the property opened in April this
year aqnd saw total seven bidders including Prestige, Mahindra Lifespaces, CapitaLand and RMZ
Corp.Bids offered by Prestige Estates and Mahindra Lifespaces for the property are
speculated to be around Rs 111 crore.
Some
of the related links to this are herebelow:
http://www.bseindia.com/xml-data/corpfiling/AttachHis/Brigade_Enterprises_Ltd_270612.pdf
So
basically the transaction has gone through @ Rs.13.15/acre.
I
must clarify here that I’m using the above information purely to lend a
valuation perspective and there is NO information whatsoever in public domain
that the Alfred Herbert ever intends to monetize or develop their 11 acre land ( of which manufacturing
facilities are estimated to be on about 2.5 acres).
Also
I’m not privy to land usage restrictions, if any as also other factors which
may bear on the valuation.So, since we are calculating on the basis of a purely
hypothetical scenario, it is but prudent to value at a substantial discount.
We’ll
value the land parcel @ Rs.8 cr/acre which is a little less than a 40% discount
to the HUL-Brigade deal. The value of Alfred Herbert's Bangalore land can be pegged at about Rs.88 cr.or so.
Development
No.2:
Promoter
shareholding has gone up from 62.39% as
of Sept 30,2010 to 70.39 % as on Sept 30, 2012- an increase of 8% over a 24 month period- a good sign.
Development No.3:
During
the quarter ended June 30,2012, the company has been able to recover Rs.0.98 cr
out of doubtful advances of Rs.2 cr. The Rs.2 cr advance had been already
provided for in the books and hence the Rs.0.98 cr featured as an exceptional
income.
It must be noted that for the year ended March 31, 2012, its subsidiary Alfred Herbert Ltd ( which operates from the Whitefield plant) posted a loss of about Rs 0.40 cr on a turnover of about Rs.14.2 cr due to pressure on margins
Besides the above, there have been no noteworthy developments.
Value of quoted equity investments ( market value) + MF units was about Rs.25 cr as of March 31, 2012.
The company continues to be nearly debt free.
Market capitalization at current market price of Rs.210 is about Rs.16.1 cr.
At the time of writing this report, the
author /his family have an investment interest in the stock mentioned above.
Under no circumstance does the information in this report represent a
recommendation to buy or sell the above-mentioned stock. This report has
been prepared and issued on the basis of publicly available information,
internally developed data & other sources believed to be reliable. This is
just a suggestion solely for information purposes and does not constitute a
solicitation to any person to buy or sell a security. While the information
contained therein has been obtained from sources believed to be reliable, no
responsibility (or liability) is accepted for the accuracy of its contents.
Readers using the information contained herein are solely responsible for their
actions and are advised to satisfy themselves before making any investments.
do you track tci dev ?
ReplyDeleteDon't track..sorry.
ReplyDeleteHi Sir ,
ReplyDeleteWhat can i say .. excellent blog , u have searched some real gems , never knew such companies exsisted .. Thank you ,
Sir , how can i reach you , i mean your contact no or emaIL id , want to personally thank and share some more companys and add to some info on albert since i am from bangalore .. My contact id - naveenkumar1977@gmail.com ,
Cell no _ 09845011001 , will prefer to call you , do sms me your no .
Thanks
Hi
ReplyDeleteRegarding their real estate has the company indicated anywhere regarding their plans to develop the land parcel. Gone through the FY12 annual report, could not find any info, not sure if I missed anything. My thinking is in absence of any concrete plans of management to develop the land, there might not be any catalyst for re-rating.
Thanks a lot, BTW I discovered your blog quite late and I regret for it...
hi Anil,
ReplyDeleteyou're right.Immediate catalyst is not present. the stock makes sense only for those who invest in deep value situations and are willing to play the waiting game.
Thanks.
Hello:
ReplyDeleteCan you kindly share any latest update on this counter? Promoters have been constantly buying from open market.
Thanks in anticipation.
Cheers!
Hello Equity Tracker,
ReplyDeleteUnfortunately don't have any update ..shall wait for the AR.
Thanks for the response. Request you to kindly keep us posted if you find anything interesting.
ReplyDeleteSome of your picks are rocking and outperforming the markets...to name a few that I have been tracking (hold some of these) include Panasonic Energy, Next Mediaworks, ISGEC, Godfrey Phillips, Premco Global, Tata Comm....
I really admire your impeccable research and publishing these details selflessly for everyones benefit....it's much appreciated!!
Keep up the great work!!....look forward to hear some more interesting picks in future.
Cheers!!
GST likely to prop operating margins of multiplex players by 250 bps: ICRA.capitalstars
ReplyDelete