Scripscan:BF Utilities Ltd
cmp:600
Code:532430
Story:The BF Utilities stock is on fire over the past 1 month or so with the counter rallying over 35% in the bourses. Not because it has been spun off from Bharat Forge and has a wind power generation business. That business is too small. BF also owns shares in Auto Axles, Bharat Forge, Kalyani Steels,Kirloskar Oil and Kirloskar Pneumatic . And through its ownership of KUD, it owns shares in all these companies.The approx market value of these investments, according to one quick calculation, exceeds Rs 150 crores.BF also owns the entire equity of Kalyani Financial Services, a non-listed company. The market cap of BF Utilities is of course far higher than its market cap. What else does it have?BF has five 100% subsidiaries - Bhalachandra Investments, Mundhwa Investments, Forge Investments, Jalakamal Investments and Jalakhumbi Investments. Each of these hold equity in Nandi Infrastructure (NICE), Nandi Highway Developers (NHD) and Kalyani Utilities Development (KUD). So, BF holds 69% of NICE and 100% of KUD. NICE owns land at Madavara and Madanayanahalli along the proposed Bangalore-Mysore expressway corridor. The BMICP Phase 1 is being carried out by Nandi Economic Corridor Enterprise (NECE), which is wholly owned by NICE. BF Utililties is therefore a play on the infrastructure development that is happening across the country.I wouldnt be able to value the counter based on these subsidaries but one such similar case which comes to mind is jai corporation.People are really betting big on BF Utilities and any major announcemments favouring it may make the scrip roar.High risk investors can buy the counter for long term horizion.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
Wednesday, May 20, 2009
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
