10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Friday, October 30, 2009

IVP Ltd:Future growth prospects and outlook

Scripscan:IVP Ltd

Story:IVP is known to the investors as a company involved in the edible oil business. But this company is no more into edible oil business. To give you a background, this is a 75-year old company; it was taken over by the present management, which is the Allana Group of Mumbai from Shapoorji Pallonji Group in mid-80’s. The transfer of the company happened from Forbes Campbell to the new promoters. Now Allana Group is one of the leading exporters of meat and meat products from the country and they also have the Asia’s largest meat processing plant in India.IVP was mainly into three-lines of businesses, the main being the edible oil business; this company is also into foundry chemicals and industrial ceramic business. Now pursuant to a restructuring exercise, which the company undertook few years ago, the edible plant of the company located in Bombay has been closed down. The industrial ceramic division of the company has been sold to the Murguppa Group for a total consideration of about Rs 6 crores, 25 lakhs.The company is now left with only the foundry chemical business with four manufacturing plants for manufacture of foundry and industrial chemicals.Foundry chemical business is the business where the company is making profit, which is now getting reflected in the financials of the company.This company is trading at a marketcap of just about Rs 28 crores. This probably reflects the valuation of only the foundry chemical business.Now a very big hidden asset in this company is its edible oil plant, which was located at Rhey Road in Mumbai, the management is tightlipped about the size of the land there. But this plant was started in the early 1930’s when land was not such a scarce commodity, and vanaspati and edible oil business generally requires big areas of land. They also had their storage terminals located in the same premises. So given all these factors, I would assume that the land area would be close to at least about 2-3 acres, if not more.If the current marketcap of the company is not taking into account the land area, the management is keeping all the cards close to its chest and they are not wanting to divulge any information at this point of time. But announcement of any plans by the company to develop that land and the way the real estate prices have been going up in Bombay, it can lead to a huge upward re-rating for this stock at a marketcap of Rs 28 crores. The downside looks extremely restricted since it’s a 70-year old company, the assets it is sitting on at historical values, would be valued much more than probably the current marketcap of the company.So the big trigger for this company could be that land, which it holds in Mumbai.

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: 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.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner