Get Dazzled

***************************Power of equity****************************************
Unbelievable but it has happened
Just imagine....
  1. How much can you make in 26 years by just investing Rs.10,000/- initially in any of
    financial instruments? Take a wild guess???

    Let us look at the real example…
If you have subscribed in 100 shares of _____ company with a face value of Rs. 100/- in 1980…
  • In 1981 company declared 1 : 1 bonus = you have 200 shares
  • In 1985 company declared 1 : 1 bonus = you have 400 shares
  • In 1986 company split the share to Rs. 10 = you have 4,000 shares
  • In 1989 company declared 1 : 1 bonus = you have 8,000 shares
  • In 1992 company declared 1 : 1 bonus = you have 16,000 shares
  • In 1995 company declared 1 : 1 bonus = you have 32,000 shares
  • In 1997 company declared 1 : 2 bonus = you have 96,000 shares
  • In 1999 company split the share to Rs. 2 = you have 4,80,000 shares
  • In 2004 company declared 1 : 2 bonus = you have 14,40,000 shares
  • In 2005 company declared 1 : 1 bonus = you have 28,80,000 shares
  • In 2010 company declared 3 : 2 bonus = you have 48,00,000 shares
At the end of 2012 …..........
  • You have 48,00,000 shares of the company
Any guess about the company? (Hint : Its an Indian company)
Any guess about the present valuation?
The result of ‘Power of Compounding’
Your present valuation is about
Rs. 190 Cr. +
&
The company is ‘WIPRO’
Other such examples ….....
CIPLA
Investment of Rs. 10,000/- in 1979 will fetch Rs. 95 cr.+
INFOSYS
Investment of Rs. 10,000/- in 1992 will fetch Rs. 150 cr.+
RANBAXY
Investment of Rs. 10,000/- in 1980 will fetch Rs. 19 cr.+

****************************** OMDC ********************************

We recommended omdc in 2005 @ 2000/sh in Oct 2005 and gave a price target of Rs.1 lac. The script touched a high of Rs. 92200.00 in Dec 2010

I bet you have not seen such a Balance Sheet in your life :

Among the largest iron ore mining company in India.

Capital of Rs. 60 Lac (Only Six Lac Shares)

At today price of 100$ / Tonnee, (Rs.4,500 / Tonnee) The Company has iron ore reserves of Rs. 1 Lakh crore.

Company has proven Iron ore reserves of 200 million tonnee

Equity capital of Rs. 60 lac only. (6 lac shares)

FLOATING STOCK OF ONLY 2 LAC SHARES

Free cash reserves of more than 790 crore.

Net profit of Rs. 182 crore. (Profit after Tax for Year ended March 2009)

NET PROFIT MARGIN IS 85% OF SALES

Shares currently available for Market Cap of 900 crore at PE ratio of 5 only

Current Earning /Share (EPS) of Rs .3000 Per Share

NEAREST COMPARABLE CO. SESA GOA QUOTES AT PE OF 10

Likely price on listing after Bonus & stock split in 1 year time is Rs.1 lac/share.

EBT, EBDT, EBIDT & EBIDTA are almost same, a zero debt co.

Shares are listed at CSDL & NSDL & available in DEMAT more.

Highest Dividend of Rs. 455 / Share on paid up Rs. 10 stock @ 4550% for Year Ended March 2009.

Highest by any Company in India, Listed or non Listed for last 5 years, which is only 15% of Distributable Profits.

******************************EASTERN INVESTMENT**************************

Eastern Investments Limited is a public sector company promoted by Govt. of India..
There are 5 companies within the fold of Eastern Investment Ltd. The most valuable company in this group is Orissa Mineral Development Corporation Limited which is into Iron Ore Mining.
Eastern Investments is holding 51% Shares in OMDC. It belongs to the Bird Group of Companies.
306000 Shares of Orissa Minerals Development Company Limited are held by Eastern Investments, which has a small capital of Rs. 1.44 CRORES.
Last declared dividend in Eastern Investment Limited is 65.65%   for FY 2010-11
The Shares of Eastern Investment are available @ Rs.4000.00 / Share
Shares of Eastern Investments Ltd. are listed at Calcutta Stock Exchange although not traded .TRADES ARE DONE IN OFF MARKET.
The Shares of Eastern Investment are dematerialised with NSDL & CDSL.
At todays price of Rs. 33,000.00 / share of OMDC, the value of investments of OMDC in Eastern is approx Rs. 990 Crores, whereas the value of market capital of Eastern Investments is only Rs. 576 Crores.
THE SHARES ARE SOON TO BE LISTED ON NSE AND BSE MOST LIKELY IN 2012-13
Only Long term investors should buy into Shares of Eastern Investments Ltd.

******************************BHARTI TELECOM*********************************

Holding Co. of Bharti Airtel Ltd., India's biggest telecom co in private sector.
Sunil Mittal and Group hold 45.3% share in Bharti Airtel, entirely through 85.99 Crore shares in Bharti Telecom Ltd.
Paid up capital of Bharti Telecom is Rs. 21 Crore with 2.1 Crore shares of face value of Rs. 10 each.
Net worth is Rs. 1089 Crore.
Value of investment in Bharti Airtel's 172.55 Crore shares at todays price (30.6.2012) of Rs. 300 per share is Rs. 51,765 Crores.
The Co shares are available @ Rs. 4000.00 per share.against intrisic value of rs.24600.00/sh .
This values the Co at Rs. 8400 Crore against an embedded value of Rs. 51765 Crores of investment leaving aside ownership premium.
Bharti Airtel has again declared dividend of Rs. 1 on face value of Rs. 5.00 / share for fy ended March 2011.
Bharti Telecom will receive a sum of Rs. 172 Crore free of income tax.
Going forward, with the launch of 3G services, direct to home, retail venture with wall mart, insurance and mutual fund services, mobile banking, etc, the future of Bharti Airtel is very bright and the Co should be quoting at around Rs. 600 ex bonus in 2 - 3 Yrs time and dividend payout of Rs. 5 / share.
With such windfall of dividend and cash flow expected, Bharti Telecom is expected to declare handsome dividend in future.
Other listed holding subsidiaries of various Co's quote @ around 60% of embedded value.
Investment is highly recommended for 3 - 5 yrs horizon.
Price target Rs. 15000.00  in 3 - 5 yrs.
The stock is unlisted, trades in off market, has poor liquidity and is traded in demat mode.
 

2 comments:

  1. There are also a lot of people who lose much money in the stock market.

    ReplyDelete
  2. Agreed. Bur , with a clear mindset and some degree of research it is possible to make fabulous returns of the market.

    ReplyDelete

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