"Warren Buffett Quote":I am not looking at quarterly earnings projections,am not looking at next year’s earnings, am not thinking about what day of the week it is, I don’t care what investment research from any place says, am not interested in price momentum, volume or anything. I am simply asking: What is the business worth?
Story:How lucky you are?The question has its merit as the above counter is terribly illiquid with no activity for the last few months.Probably it traded for a few trading sessions in the last 6 months or so.But provided you are able to bag a few of it,gala days are ahead(the counter is not suspended, trading is on but there's just no sellers available).Immediate disclosure would be-I too am in the queue with my orders in it,hoping against hope,to avail myself a few of it.Forget business model and leave aside chartbusters ROE,if you can show me a company with an extravagant impeccable visionary leader in place, am ready to own it with multiple x.Ravindra trading or a would be Renuka energy, belongs to the rags to riches guy "Narendra Murkumbi",the owner of Shree renuka sugars(I feel blessed to have interacted with this pure self made billionaire genius guy of only 43 yrs, who cares a great deal for his minority shareholders).Mr Murkumbi owns around 74% stake in the company which made a profit of 1crs on a turnover of 33crs for the last fiscal.The company also paid a dividend of 1 re which at present price yields more than fixed deposit interest of over 8%.So what finds my interest on this particular company which boasts of a marketcap of less than 1cr?Obviously the presence of the great guy who finds his rank in the forbes richest Indian list.The company is in process of merging Shree Renuka Urja Pvt Ltd (under incorporation) and Shree Renuka Energy Limited with itself.Shree Renuka Energy headed by J Suresh Kumar (former CFO of Lanco Infratech)is a subsidiary of Renuka Sugars.Its setting up a 3×350 MW Coal Based thermal power plant in Karnataka.I am in no mood to pen about the scheduled time of the power station or even its revenue generation ability.It would be too premature to comment on that as it takes quite a time to gather all the needed approvals.There's also a long gestation period with much executional risks attached to it.Overall its again an amazing move as renuka energy finds a way to get listed which will help it to garner funds from investors.The merger fineprints are not in my hand yet but the present entity itself is worth 500rs per share to me.Mr Murukambi created amazing wealth for his shareholders in shree renuka sugars over the last 10 years.I feel, he would make much more for himself and his shareholders again in Ravindra trading(renuka energy). This above counter thus is a possible future 10-20-30-40 bagger.
btw:Google up Narendra murkumbi business world to know everything about him.