Updates on Ansal Properties & Infrastructure Ltd

HEM Investments Pvt Ltd has on 30.09.2010 invested Rs 6.9 crore in 7.33 lakh shares of Ansal Properties & Infrastructure Ltd @ 94.10 per share which is an uptick for the share

Ansal Properties & Infrastructure Ltd has informed BSE on October 08, 2010 that in respect of issue of equity shares of face value Rs. 5/- each of the Company to QIBs under Qualified Institutions Placement in terms of Chapter VIII of the SEBI Regulations, the QIP Committee of the Board of Directors of the Company has, decided to close the issue on October 08, 2010 with immediate effect.

Based on the bids received, the Company will be issuing 257.26 lakh Equity Shares of Rs. 5/- each at a price of Rs. 89.95 per Equity Share (including a premium of Rs. 84.95 per Equity Share) aggregating to approx. Rs. 231.41 crore
The share captial shall stand increased to 15.71 crore shares from 13.14 crore shares a dilution of 19.6 percent

2010VP21 Ansal Housing and Construction

Ansal Housing and Construction

BSE: 507828
NSE: ANSALHSG
Market Cap: Rs. 124 Cr. (post conversion at current market capital shall be Rs 139 crore)
Face Value: Rs. 10
CMP Rs. 67.45
Book value Rs. 145.06 (post conversion the book value  be Rs 136.74 considering the conversion prices)
P/BV at 0.47x  (0.49x considering dilution)
Forward PE 4.5 x  (5.1 x considering dilution) as against 13 of peers
Forward EPS Rs. 15 (Rs 13.3 considering dilution)

my estimates of  turnover Rs 280 cr PBIT Rs 35 cr for 2010-11 ( growth of 32 pc)

The balance sheet total of Rs 595 cr was financed by equity Rs. 270 cr long term debt Rs. 314 cr
The assets were
Rs. 32.99 cr  in fixed assets ,
Rs. 25.04 cr  in investment of subsidaries of similar business
Rs. 60.99 cr  in debtors
Rs. 15.98 cr  in cash/bank
Rs 482.4 cr  in inventories
Rs 177.29 crore as loans and advance (advance to subsidiaries for land property Rs 153.2 cr)


The turnover for the year Rs. 212.16 cr and PBIT was Rs 28.54 cr for (2009-10) ie 13.45 pc

The current inventory roughly at market value is above Rs 750 crore which represents the project to be completed over 2.5 years with an additional outlay of Rs 200 crore to convert to finished projects

Latest development


Preferential allotment of 12 lakh warrant were made at price aggregating 840 lakh (Rs 70 a share) which show promotors are bullish.
http://www.bseindia.com/stockinfo/anndet.aspx?newsid=bc346810-a512-46bf-94dc-50cf626e73f0

Promotors holding above to be at 54.83 percent after preferntial allotment from current 49.60 pc
The outstanding shares shall increase from 184.71 lakh shares to 205.71lakh shares (11.31 pc) including conversion of outstanding 9 lakh warrant (@40)on or by January 2011.
They have housing projects in Agra, Meerut,Ghaziabad, Mumbai, Indore , Jhansi which make them ideal balanced developer
http://www.ansals.com/national-presence/index.asp

link to site attached for verification of project and annual reports
http://www.ansals.com/

2010VP20 Ansal Properties & Infrastructure Ltd

Ansal Properties & Infrastructure Ltd

BSE: 500013
NSE: ANSALAPI
Market Cap: Rs. 1,143 Cr.
Face Value: Rs. 5
CMP 87
Book value 93
Forward PE 7.9
Forward EPS 11

Ansal Properties & Infrastructure Limited will be launching four new realty projects in Punjab soon. Of the four projects, one will be a 150 acre (approx.) integrated township project in Mohali, two Group Housing projects - 18-aere Group Housing project in Mohaii and the second an 18-acre Group Housing project in Amritsar, and a Commercial-cum-Retail project in Ludhiana. 20 Sep 2010


Ansal API also announced completion of a collaboration project with the Punjab Police Personnel Cooperative House Building Society (PPPCHBS), under which the company has allotted plots of various sizes to 259 members of the Society.

Ansal API already has several projects in Punjab, spreading over 1000 acres across various parts of the state. This include about 260 acre Golf Links integrated township in Mohali, Orchard County a 12-acre Group Housing project in Mohali, Sushant City, a 250 acre integrated township project in Bathinda, City Centre, commercial-cum retail project in Mohali, Hampton Court, a 42 acre industrial park in Ludhiana and Aerodrome, a commercial-cum-retail project in Amritsar.
 -----------------------

Realty firm Ansal Properties and Infrastructure is planning to invest about Rs. 4500 crore to develop the second phase of its 2,500 acre hi-tech city adjoining Greater Noida, according to a report.
Based on the D/E financing of project the Equity portion may vary from 1200-1500 crore and balance through debt financing.


The report stated that the company would soon launch the second phase of its integrated township 'Megapolis' at Dadri covering 650 acre of area where it would offer 1,900 plots and build nine million sq ft each of housing and commercial space. The company expects to realise nearly Rs. 7500 crore  the next three-four years,
-------------------------------------

The Board of Directors of Ansal Properties and Infrastructure Ltd has reported results for the first quarter ended 30th June, 2010
The company's net profit for the quarter ended June 30, 2010 stood at Rs38.79 crore on a consolidated basis as against Rs10.21 crore of the corresponding quarter of 2009, registering a astonishing growth of 280%.
The total income in first quarter of 2010-11 was Rs274crore on a consolidated basis, compared to Rs144 croreof Q1, 2009-10 an increase of 90%.

The company attributed the reason to completion of various project during and more due for completion in coming quarters of 2010-11

--------------------------

Preferential allotment to promotors and QIB placement at Rs 100 level possible

Ananth Rathi Securities owns a major stake in Ansal properties

Daily News 29Sep2010

In this section useful news to board is published mentioning sources

The World Bank is exploring whether to invest in an USD 11 billion debt fund the Indian government will roll out by next year as part of a massive push to its infrastructure sector, the bank's India head said.

 India was making progress in tackling procedural hassles that have held back faster infrastructure growth but a major roadblock to more private investment was a shortage of bankable projects.
The World Bank was likely to lend around USD 15 billion to USD 20 billion to India's infrastructure sector in the next five years. Typically the bank's lending to the sector ranges between 40-60% of the total annual lending.
The government has announced theUSD 11 billion debt fund as a part of a series of recent measures to overhaul India's creaking infrastructure, which has long been seen as hobbling faster growth in Asia's third-largest economy. A similar fund is also under consideration for the power sector.
Zagha said in an interview as part of the Reuters India Investment Summit, when asked whether the World Bank would contribute to the fund.
Pending legislation to give farmers a better deal in land acquisition would be a big step towards balancing development with social justice and help ease the implementation of infrastructure projects, he said.
The Indian government plans to double spending on infrastructure to USD 1 trillion in its next fiveyear plan, which runs from 2012-17.
"That's a statement of intent," said Zagha, referring to the spending target. "There's a sense of urgency in the government which I didn't see before. That's very encouraging."
There was at least USD 50 billion to USD 60 billion untapped investor potential in water and sewage treatment projects alone, he said.
"I don't think financing is an issue." he said. "The greatest challenge is bankable projects. Investors will come, financing will be found if you find ways of making projects which are commercially attractive and bankable."
The fiasco of New Delhi's preparations to host the Commonwealth Games has proved an embarrassment to the government and raised worries in some quarters, including the rating agency Moody's Analytics, that it could deter foreign investment.
"I don't it matters," Zagha said, when asked whether the Games could hit investor sentiment. "But it does show the organisational issues that India has to deal with."


source http://www.moneycontrol.com/

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Indiabulls Financial Services securitised 30% of loan portfolio

Indiabulls Financial Services Limited securitised 3771 crore of its loan book upto 31 March 2010 as against Rs 12550 crore outstanding as on 30 June 2010. This will enable the company to sell off the assets through SPV and fund its loan book which growing at 35% CAGR over three years

Indiabulls Financial Services Limited has entered into various agreements for the assignment/securitisation of \ loans with assignees, wherein it has assigned/ securitised a part of its secured and unsecured loan portfolio amounting to Rs. 3770.57 crore upto March 31, 2010, being the principal value outstanding.
Due to foreclosures and repurchase transactions with different assignees during the year, the Company has reinstated the repurchased loan balances in the books of account aggregating to Rs. 252.40 crore The Company has also reversed the proportionate upfront income so accounted on assignment/securitisation.

The company will now able to transfer these securitised as a portfolio and offer the same for sale to investor and realise funds to meet its growth need without depending on shareholder to fund for fund requirements

In traditional loan business the loans lend by a financial instiutions continued in book of lender until it is closed by the borrower

In modern loan business followed by IBFSL the loans lend by financial instituions are securitised and sold off as bonds through SPV thus realising money before final settlement by the borrower. In this scheme the lender get money for funding the loan book instantly rather than waiting for borrower to repay the loan

2010VP19 Indiabulls Financial Services Ltd

Indiabulls Financial Services Ltd
BSE: 532544 NSE: INDIABULLS
Price Rs 145.20 /145.35 (23.09.2010) - High / Low 196 /93
MCap Rs. 4506 crore
Paid up Share captial 61.98 crore (30.99 crore shares of Rs 2 each)
Book value Rs 130.8 EPS (09-10) Rs. 8.27 Dividend Rs 5
Promotors hold 32.41 pc, Foreign institutions 35.91 pc

Indiabulls Financial Services Ltd. is one of the fastest growing NBFCs in India, with assets under management (AUM)Rs 12530 crore as of June 2010 and a cumulative disbursal target of over Rs. 1700 crore for the year 2010-11.
Amongst its financial services and banking peers, it ranks amongst the top few companies both in terms of net worth at Rs 4054 crore,and capital adequacy, which stands at 28.48% as of June 2010. The company’s strength has been acknowledged and underlined by rating agencies that have consistently accorded high ratings to it. The company’s business strategy is focussed on mortgage loans which today constitutes over 70% of the advances.

The company has till september borrowed through NCD Rs 1910 crore @ 9.5 pa and issued 2.75 crore share warrant worth Rs 632.5 crore (convertable into shares @ 225 within 18 months). Leading banks and financial firms like Axis Bank, ICICI Bank, IDBI Bank, Central Bank, IOB, BOM, IDFC, SICOM, UTI MF, Reliance MF etc invested in the NCDs.

The company which had been an underperformer last year is all staged to grow at 38-40% in loan book for 2010-11 to reach gross advance of 13950 crore by March 2011

Q1 2010-11 financial shows a growth of 33 pc in total income
------------------------------------------------------------
Net profit of Indiabulls Financial Services rose 109.6% to Rs 128.24 crore in the quarter ended June 2010 as against Rs 61.17 crore during the previous quarter ended June 2009. Sales rose 33.02% to Rs 384.52 crore in the quarter ended June 2010 as against Rs 289.07 crore during the previous quarter ended June 2009. The company has also provided Rs 62.5 crore Q1 2011 as tax provision as against Rs. 31 crore Q1 2010

The full year figure for 2009-10 and estimates for 2010-11 is as follows
Particulars ----2009-10 -----2010-11
===========(Rs in crore)=======
TIncome ------1420.30---- 1835.00 (29.2%)
OpProfit --------927.80---- 1289.80 (39.0%)
NPBT-----------381.40---- -566.50(48.5%)
Inc Tax ---------130.40---- -171.50(31.5%)
NPAT-----------264.20---- -395.00(49.5%)
EPS ------------Rs 7.82 -------Rs. 11.70

At current price of Rs 145 the share trades
at PE of 12.4x forward EPS of Rs 11.70,
at P/BV of P/BV of 1x forward expected book value of Rs 145.60 (after capital conversion)
at divdend yield of 3.45 pc at expected dividend of Rs 5 per share
The share seems under valued considering the growth in business and valuation of companies in similar line of business

IDBI Bank Ltd profit estimates 2010-11 vs actuals

As per Sec 211 of Income tax act Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by On or before the 15th September--- Not less than forty-five per cent. of such advance tax, as reduced by the amount, if any, paid in the earlier instalment.
Durint the year the tax paid and profit for half year ended 30.09.10 were as follows
For Period H1 Sep Sep Q2 Sep Q1
------ended --2010 ---2010---- 2010
Profit BTax.... 974 ....645.... 329
Tax Paid .......263 .....184 ..... 79
Net PAT .......711...... 461.... 250
EPS ............7.25.......4.70... 2.55
During the Quarter the outstanding shares has increased to 98 crores from 72.9 crores due to infusion of capital by Government of India.
The First quarterly result were taken as published and the IDBI bank is likely to post PAT of Rs 711 crore for the half year ended 30.09.2010 after considering the tax @30% pa which represents 67.3 pc over last half year ended 30.09.2009
The Advance tax figure of 263 cr paid up to 15 Sep 2010 were considered from return by Income tax department
--------------------------------------------------------------
Actual performance reported as on 30 sep 2010
For Period H1 Sep Sep Q2 Sep Q1
----ended --2010 ---2010---- 2010
...............Rupees in crore.............
Turnover....  9824....5069 ...4755
Profit BTax..1857....1026......831
Provisions.....944.......442......502
Tax Paid .......234 .....155 .......79
Net PAT .......679...... 429.... 250
NPM in pc ....6.91..... 8.46... 5.26
EPS ..............6.93.....4.38... 2.55
================================
The growth in half year ended 30.09.2010 over half year ended 30.09.2009 in turnover is 15.5 percent and net PAT is 59.4 percent
The growth in trailing 12 Mths 30.09.2010 over full year ended 31.03.2010 turnover is 7.5 percent and net PAT and 24.63 percent

Total assets at Rs 236000 crore as on 30.09.2010
Provision at 74 percent of doubtful debts based on RBI norms and 44 percent on traditional basis.
Net Interest Margin above 2 percent during the quarter 30.09.2010 and shall continue so


NOW THE ADVANCE TAX ESTIMATE FOR 2010-11
(figures extrapolated using the advance tax paid and previous three years tax rate)
Advance tax paid Rs 263 crore is 45% advance tax / 40.5 % of estimated final tax.
The estimated final tax is Rs 600 crore for 2010-11.
Assuming a net tax rate of 28.5% on Book Profit and the trend in growth of income in case of IDBI Bank
the Estimated Profit before tax and Net Profit after Tax would be Rs 2275 crore and Rs 1675 crore respectively for 2010-11 over a Turnover of Rs 20730 crore
as against Profit before tax Rs 1044 crore and Net Profit after Tax Rs 1031 crore for 2009-10 over a Turnover of Rs 17563 crore
The EPS is expected to be 17.1 and at current market price of Rs 180 the share trades at a PE of 10.53 x as against 15 x for the industry

updated on 30.10.2010

2010VP18 BLB

BSE: 532290 NSE: BLBLIMITED Rs 11.10 as 21.09.2010

Outstanding shares 5.29 crore of Re 1 each Promotors holding 67.3 percent

The company BLB hold investment worth Rs 5.10 crore in shares of various companies (which includes shares of stock exchanges)
1.73 lakh shares in VBC Ferro Alloys Ltd at book value of Rs 248 a share at current market price of Rs 388 the unrealised book profit of Rs 2.42 crore
5 lakh share of Shree Renuka Sugars Ltd at Book value Nil and at current market price of Rs 81 the unrealised book profit of Rs 4.05 crore
50700 share of Reliance Ltd at Book value Nil and at current market price of Rs 1030 the unrealised book profit of Rs 5.22 crore
1 lakh share of Jindal Steel & Power Ltd.at Book value Nil and at current market price of Rs 710 the unrealised book profit of Rs 7.10 crore
investment in shares of stock exchanges BSE,DSE,CSE, UPSE at Rs 0.53 crore is worth more than Rs 2 crore

So the total unrealised book value is around Rs 20.30 crore and likely market value of Rs 25.40 crore on outstanding shares of 5.29 crore works out to Rs 4.80 a share and the company hold shares in certain unlisted entites at around Rs. 1.20 per share which can be valued at same value.

One can evaluate a final intrinsic valuation of Rs 33.60  ( Rs 30.60 for assets and Rs 3 as earning for the year 2010-11) against which the trading at Rs 11.20 ie a discount of 67 percent to intrinsic value
As against the net book value of Rs 27.27 the company has net borrowing to the tune of Rs 7.9 per shares and has invested

in shares and commodities (stock in trade) which is worth Rs 9.5 per share
in net fixed assets Rs 1.60 per share
in cash and bank Rs 15.90 per share
in investment Rs 6.00 per share (at market value already discussed above)
in other current assets Rs 4.7 per share & in loans and advances and debtors Rs 7.2 per share as reduced by current liabilites Rs 6.4 per share returning a net value of Rs 5.5 per share

Thefollowing may also be considered
1) the company follow an accounting treatment of booking profits every intervening year by shifting stock from stock in trade to  long term investment, so that earning for a year will not be comparable with following year
2) the free float of share available is 1.73 crore shares ( 32.7 per cent of 5.29 crores shares outstanding) excluding promotors holding 67.3 percent the average quantity trade in BSE and NSE on an average is in range of 15000 - 30000 shares a day
3) I evaluate it as high risk stock for minimal exposure in portfolio

2010VP Performance

The performance of scrips selected in www.2010valuepick.blogspot.com

As on 10.septemeber 2010

Scrip Name	Date of Post	Market Price on posting date	View of blog 2010valuepick.blogspot.com	Market Price as on 10.Sep 2010	Gain / (Loss) in percent
Assamco	Jan 2010	18.70	The value unlocking if oil assets are considered	22.15	18.4
NHPC	Jan 2010	35.60	Buy at dips with long term target 45 by June 2011	30.70	(13.7)
Trend Electronics	Jan 2010	33	96	94.90	287
Sree Sakthi Paper Mills	Jan 2010	24.65	May go in for diversification (sorry management lazy)	24.90	1.01
Bengal Tea & Fabrics Ltd	Jan 2010	66	95	66.15	1.01
Spice Mobiles Ltd	Feb 2010	56	Long term buy	87.00	55.35
IDBI Bank Ltd	Feb 2010	116	Long term buy	139.70	20.40
Surya Roshni Ltd	April 2010	83.4	120% appreciation in 12 Mths	101	21.10
Empee Distilleries	April 2010	116	365 by Dec 2010	170.20	46.70
Spanco	April 2010	85.25	269 by Oct 2011 if bonus is declared	108	26.70
Su-raj Diamonds & Jewellery	May 2010	50.90	Long term buy	66.90	31.40
Micro Tech	May 2010	189.4	405-435 by Dec 2011	213	12.46
Phillips Carbon Black	Aug 2010	196	364 in 12 Mths	233.80	19.46
Ceat	Aug 2010	148.5	278 in 12 months	178.20	20.00
Geojit BNP	Aug 2010	A comparative study no specify targets
India bulls securities	Aug 2010
Gujarat Alkali & Chemicals Ltd	Sep 2010	119.8	long term buy	127.00	6.01
Rajapalayam Mills	Sep 2010	652	long term buy	676	3.07
ONGC	Sep 2010	ONGC should buy out Cairn India should not let Vedanta have it
Cairn	Sep 2010

Now user may evaluate independently

ONGC should make counter bid for CAIRN india assets

Anil Agarwal of Vedanta Resources has made a bid of Rs 44160 cr for 50% stake in Cairn india and is required to make an open offer for 20% stake which will be valued at Rs 15500. This make CAIRN India's valuation Rs 82190 crore

CAIRN India has proven oil reserve of 4 Billion BOE or 560 MTOE as against 207 MTOE owned by ONGC
at 70 per cent interest cairn india still has 390 MTOE of reserves is 1.88 times ONGC 2008-09 proven reserves

AT risk reserve level the total reserve estimated at 6.5 Billion BOE or 910 MTOE which at 70 % is 640 MTOE is 3.09 times ONGC 2008-09 proven reserves

Now question arise whether ONGC valued 2.9 lakh crore will counter bid for 390 MTOE proven reserves 50% interest investing Rs 44160 crore which makes an per 226 crore per MTOE (at full value ie., Rs 88320 cr)

It may be remebered that ONGC valution at 207 MTOE is 2.1 lakh crore (after adjusting for other assests) which make it 1014 cr per MTOE

--------------------------
I have taken care while collecting data from AR of ONGC for 2008-09, CAIRN India 2009-10 and while converting BOE to MTOE

MY understanding is that CAIRN has interest of 70 % proven reserve of only out of 6.5 BillionBOE at risked level and of 70% 2P proven reserve of 4.0 billion BOE which make its interest at 640 MTOE and 390 MTOE respectively.
If it is otherwise the valuation will only improve and the valuation at 44160 cr for 560 MTOE will be 160 cr for MTOE (at full value)

I personaly think that ONGC should make an assesment of the proven reserve claimed by CAIRN India and if the same is found to be correct then make a counter bid in nation's energy interest. Spending an amount of 44160 crore for 50 % stake for controlling oil resources which is said to meet a quarter of energy requirment will not be worthless in times when energy prices go up.

All interested indians may kindly contact

S.K Srivastava
Director General of Hydro carbon
Phone No : 91-120-4029401, 91-120-4029402
Fax:91-120-4029403
E-Mail: dg@dghindia.org

Mr. N K Sinha,
Company Secretary,
Oil and Natural Gas Corporation Ltd.
8th Floor Jeevan Bharti Building, Tower II
124, Indira Chowk,
New Delhi - 110 001.
Tel No : 91 11 23323201
Fax No : 91 11 23311326
secretariat@ongc.co.in

or may mail to OIL PSU of india so they can make a counter offer

hpclinvestors@hpcl.co.in
okhdevs@iocl.co.in
ssc@bharatpetroleum.in
oilindia@oilindia.in
investorqueries@gail.co.in

2010VP17 Rajapalayam Mills

Rajapalayam Mill BSE: 532503 | NSE: RAJPALAYAM
CMP 650 ; EPS 49 PE 13.3; BV 363 PBV 1.8

The Board (source chennai brokers)to meet on 30.09.2010 to consider Bonus issue and split of shares of FV 10

Rajapalayam Mill and its group is having high valued cross holdings
Ramco Industries is owned by Madras Cements (15.43 ) and Rajapalayam Mills (9.14) ie., 24.57 pc out of 50.54 held by promotors

Madras Cements is owned by Ramoc Industries (20.72) and Rajapalayam Mills (13.83) out of 42.01 owned by promotors

Rajapalyam Mills is owned by Ramco Industries Ltd (12.06) Madras Cement Ltd (10.33) out of 49.38 owned by promotors


The value of cross Holding of these are as follows
Name of Company M Cap as 07.09.2010 Value of Cross holdings
=============== ================= ==================
Ramco Industries Rs. 634 Cr Rs.662 cr (Ramco systems Rs 52 crore)
Madras Cements Rs.2838 Cr Rs 116.3Cr
Rajapalyam Mills Rs. 189 Cr Rs 450Cr

So Ramco Industries and Rajapalayam Mills are grossly undervalued


Ramco Industries under same mangement had issued bonus in ratio of 1:1 and split of FV 10 to FV1 in Sep 2009 and therafter in 2010 the share has appreciated

Rajapalayam is having Profit worth Rs 412 cr on account of market value of investment exceeding its book value the earning per share shall be Rs 1173 due to low capital base Rs 3.51 cr share capital base (35.1 lakh shares of Rs 10 each)

2010VP16 GUJARAT ALKALIES & CHEMICALS LTD

GUJARAT ALKALIES & CHEMICALS LTD
BSE: 530001 NSE: GUJALKALI

GUJALKALI is a company promoted by Govt of Gujarat in 1973 is based at Vadodara and Dahej,

GACL which started with an initial capacity of 0.37 Lakh TPA Caustic Soda, we have grown to be the largest producer in India, with a capacity of 3.58 lakh TPA and is engaged in the production and sale of caustic soda & related items , caustic potash & related items,chlormethane, sodium cynadies, hydrogen peroxide, Chlorine gas, Hydrochloric Acid, Sulphuric Acid, Phosporic Acid & Poly Aluminum Chloride
The Dahej unit also has 90 MW Captive Power Plant (CPP) for regular and economical power supply.
As power is the major input for production of Caustic Soda and constitutes about 65% - 70% of the cost of production, the Company alongwith other Corporations like M/s. GSFC, Petrofils Co-operative Ltd. and Gujarat Electricity Board promoted a gas based power unit in Vadodara under the name of Gujarat Industrial Power Company Ltd. (GIPCL) during the year 1985. As a promoter of GIPCL, as the plant is gas based the Company gets low cost power.

Its produts primarily serves industries like textiles, pulp and paper, soaps and detergents, alumina, water treatment, petroleum, fertilizers, pharmaceuticals, agrochemicals, and dyes and dyes intermediates.

The company exports its products to the United States, Europe, Australia, Africa, the Far and Middle East countries, the People’s Republic of China, and South Asian markets.


For the year 2009-10 the company performance was as follows
Turnover Rs 1315.87 crore
EBIDTA Rs 266.15 crore
Dep&Int Rs 139.03 crore
Other Income 24.00 crore
Income Tax 25.57 crore Credit
NetProfit Rs 171.84 crore

EPS 23.4 PE 5.11 Div 3


For the year 2010-11 the company performance is expected to be
Turnover Rs 1390 crore
EBIDTA Rs 270 crore
Dep&Int Rs 142 crore
Other Income 10.00 crore
Income Tax 41 crore Debit
NetProfit Rs 97 crore

EPS 13.2 PE 9.01 at CMP 119 Dividend yield expected 2.52 pc (at Rs 3)

The valuation of company is such that its Market capitalisation as on 01.09.2010 at CMP of Rs. 119.8 per share is Rs 879 crore where as the Market value of investment in group companies is worth Rs 311.38 cr (Rs. 43.9 cr in Gujarat State Fertilizers and Chemicals and + Gujarat Industrial Power Company Limited Rs. 267.48 cr)

book value of investment in group companies is Rs 40.4 crore (Rs 5.5 per share) making an unrealised profit of 271 crore (Rs 36.87 per share)

THE GACL AT 119.8 IS TRADING AT DEEP DISCOUNT TO ITS INTRINSIC VALUE
CONSIDERING

1) THE MARKET VALUE OF INVESTMENT PER SHARE IS 36.87 AS AGAINST INVESTED VALUE OF RS 5.5
2) AS AGAINST THE REPLACEMENT VALUE OF LAND, PLANT AND MACHINERY OF RS 3600 CRORE ( 489 PER SHARE) AND NET VALUE OF Rs. 2950 CRORE (Rs. 401 PER SHARE)
3) The book value of GACL share is Rs 189 WHEREAS the share quoting at Rs 119 is at a huge discount