Scripscan:Suashish Diamonds Ltd
BSE code:526733
cmp:115
Story:We see that gems and jewellery are again in focus now. All the companies have been doing well. Apart from this company being a gem and jewellery player, it is a site holder for DTC as well. The performance for FY11 has not been bad. They posted an EPS of close to Rs 33 with a top-line of Rs 1100 crore. Comparing FY11 performance with FY10, they have been subdued.Their delisting move which the company initiated last year failed because if you go by the shareholding pattern, the promoters hold close to 89.5% and maybe, the mutual funds, NHIs and the close associates hold about 6% to 7%. The way we are approaching March 2013, which is a deadline for all the companies to go for the stake dilution to about 75%, I think there is going to be a second delisting move by the company that can see a huge value creation for the stock. If I go by the financials, I say Rs 33 EPS; it is a debt free company on a net basis. Apart from that, it has a book value close to Rs 320. If I take the expected EPS of about Rs 35-36 for FY12 the book value will rise to Rs 350. So it is ruling close to 0.3 or 0.35 of the book value and the PE multiple is less than four. Taking all this into consideration, I do not think there is any downside for the stock. However, once the delisting move is initiated, or once the stock comes in the limelight, I think the share can move to about Rs 200 in the next 12 to 18 months time.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
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.
