cmp:-502219
currently trading at:-805
target:-1000,1200
As per reports, Borosil Glass Works holds an 18-acre industrial plot in Marol, Andheri, a western suburb in Mumbai. The company has reportedly demanded Rs 800 crore to Rs 1,000 crore for this prime piece of land being put on block. Reports added that the Lodha Group, Runwal, Piramal Sunteck Realty, HDIL and Dheeraj are likely to be in the fray to acquire the land.
Borosil Glass Works has appointed an agency to find out optimum value of the Marol property in order to enable the company to take a decision as to whether to sell or develop the land. It may be recalled that Borosil Glass Works' board of directors at its meeting held on 31 October 2009 had decided to enter into real estate business after shutting down its plant at Marol by constituting a new division Marol Division and to transfer entire other businesses into another division called Glass Division. However, the board on Wednesday, 12 May 2010, reversed the earlier decision to create two separate divisions 'Marol Division' and 'Glass Division'.
If this deal went ahead we can see Brosil crossing 2000 levels in no time, a great buy at dips,keep a close eye at this counter since all the news will be out by 28th may folks!!Its a hight Beta stock so be aware too.
18 comments:
hie i have myself invested in the stock at 803 levels...when i bought the stock it had a great enthusiasm but suddenly the interest is dying out in the scrip...is it becoz of the high price? I have full faith in the investment and do give heed to the rationale tht u explained...but does a land deal for 3 times the market price can pull the stock really to talked levels of 1500/2000..i have calculated...for the scrip to reach 1500 it wud need to hit upper circuit for almost 14 trading sessions...wats the reason behind a 5 percent circuit limit? is it being in to T2T segment?
Hi I accept with you. My calculation goes like this. Even if the land is sold for Rs. 8000 million at minimum level, the stock should go to Rs. 1750 per share.
Amt in million
Estimated cash inflow - Rs. 8000
Less - net debt - Rs. 242.289-8.878
Less - loss in 2 quarters - Rs. 275
Current mcap - Rs 3000 million
With these estimates, it should touch Rs. 1750 per share.
I think the current sell off is due to stock reaching 52wk high. some traders are cash out the 100% return but poor guys didn't realize the upside benefits that they have in this stock....
:-)
Regards
Dhananjayan
dhanan12@yahoo.com
@Himanshu, if stock starts hitting upper circuit for even 3-4 sessions from here on a very high level could be seen,only news which one should wait is till 28th may to find out the actual valuations which has been assigned to third party by Rrosil.
@dhanan average volume sold per trade over the last three day lower circuit is barely max 25/30 shares...so i think small retail guys are cashing out in hurry becoz of the huge appreciation in a very short time and even becoz of the market sentiments being negative...m staying invested even wen i think tht it can go more upper circuit bt wat i feel once it starts other way..it wud b difficult to get in...really impossible becoz of very less floating stock
@sumit have heared somewhr tht raheja's have closed the deal...with lodha's just today winning bids frm MMRDA for whopping price of close to 600cr....i can see real high levels for the stock...only thing preventing it is the circuit limit of 5 since late april wen it was included in t2t segment
@Himanshu if the deal is done then good times are ahead for this stock,and rightly said himanshu the no of buys and sell is very less still people who have in large no are holding back expecting a lot more from this counter as says go ahead.I guess when the news spread over about the land deal a huge turnover of tiny BROSIL can be seen.
This has always been a low volume stock since an year...given almost more than 300 percent return just on the anticipation of the news...u can really imagine the kind of returns once it actually comes out...u may give a rationale tht buy on rumour and sell on rally but here there is no rumour floating arround but just an announcement of deal getting done through..people are not doing justice to the stock..am not here to book my loss in this scrip before some handsome return..if one reads out the latest report they provided to the exchange and you have a sense of the market...you would never book out at this juncture..
Himanshu
truely said himashu i still remeber the zhandu pharma case it become a multi million company just because of land and same is the case of Brosil.Just patietience is the matra for now untill dela figures are out clearly
@ sumit
Land that they are holding is really a gold mine considering the latest real estate deals in mumbai...700 cr that the company is expecting would be a cake walk for the company per say...i think it would go way way beyond 700 cr may be twice or thrice as per my undertstanding...now wait is till 23 june when the postal ballot results would be out...my sense is company would announce the price earlier than that but announcement of the sale would be after 23 june.
Himanshu
@ sumit
hey bro u got some sense on its subsidiary GUJARAT BOROSIL....i think it shuold sky rocket as well but havent really participated like the parent has done over the years...single digit return for a year...I dont think company is making any sense by keeping Borosil Glassworks listed when almost whole of its business is now undertaken by Gujarat borosil..r we moving towards buy back then?
Gujrat Brosil as u say yes its single digit company but all depends on how much stake it has under Brosil Glass and if it is having majority than yes when things go rosy for Brosil Glass Gujrat Brosil could be the hidden gem. But it would be too early i think to make a call on Gujrat since 23rd june is the red carpet for Brosil :)
I guess both the companies have the same promoters then why such a disparity that punters are not able to drive this stock as the same way they have driven BOROSIL GLASSWORKS over a period of an year. Keeping a watch though on GUJARAT BOROSIL as well...its much liquid stock as compared to BOROSIL GLASSWORKS
by the way ru invested?
frankly speaking no.. i am waiting for market correction patiently.. took all my cash out at 17k levels,just waiting for right oppertunity not gettign carried away with market drama.For time being i am building up my portfolio for the gems i need to pick up in coming days :)
as far as brosil is concerned i have bit of holding in it
any advice now bro...am still holding at 800
just wait for sometime,you can get soem profit from it because land business have now become a big hit in BSE, we are seeing stocks hitting upper circuits for months which are just planning to sell the land and brosil is also one among them.Its not expected to touch 2000 or so but yes 1000 is definately on the cards and you should exit atleast 75% once it reaches 1k.
Am staying put bro...there have been rumours around for quite some time now that seth builders have bagged the deal for 800 cr.On money control blog few members have psted that they contacted seth builders and they are bluntly saying that yes they have bagged the deal but borosil management is saying that its a false news and as and when they do finalise the deal they would inform the exchange...i dont see any reason how can the seth builder disclose such kind of deals when nothing has been informed to the exchange
Trend in FII flows: The FIIs were Net Value of Rs -431.77 the cash segment on Monday while the DIIs were Net Value of Rs 1076.81 as per the provisional figures.capitalstars payment
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