IFCI: Another turn around story..
Equity is Rs 630 crs whereas the NPA as per last Balance Sheet was Rs 3950 crs.
Now what has changed in IFCI...... Equity remains at Rs.630 crs whereas during 06-07 IFCI had made major recoveries to the tune of Rs 2600 crs. leaving NPA at Rs 1366 crs.
Now IFCI will turn in net positive before April 2007 . Now the reconciliation starts..... .
NPA as of date ......... .... .............................................................. Rs 1366 crs
Estimated recovery on account of Malvika Steel.......................... Rs 550 crs
Sell of 7% stake of NSE ................................................................ Rs 780 crs
Further value of NSE stake 5% will sell at 2000 though denied by mgmt Rs 800 crs
Expected sell of land at Sultanpur 750 acrs .................................... Rs 800 crs
IFCI has called for bids for its 750 acres land at Sultanpur. The company has already fixed the reserve price to Rs. 250 crs. A minimum estimated price of th deal will be not below Rs. 800 crs whereas it could be Rs 2000 crs on upper side. Sources claim DLF is bidder.
This means all together can bring around Rs. 2900 crs in the company which will turn the negative net worth into positive to the tune of Rs 1500 crs which will make book value at Rs 35 per share.EPS for 06-07 could be above Rs 45 per share. The stock can easily surge to Rs. 35.......at least equal to book value leaving aside the normal income of Rs 3 per share and other investments.
Equity is Rs 630 crs whereas the NPA as per last Balance Sheet was Rs 3950 crs.
Now what has changed in IFCI...... Equity remains at Rs.630 crs whereas during 06-07 IFCI had made major recoveries to the tune of Rs 2600 crs. leaving NPA at Rs 1366 crs.
Now IFCI will turn in net positive before April 2007 . Now the reconciliation starts..... .
NPA as of date ......... .... .............................................................. Rs 1366 crs
Estimated recovery on account of Malvika Steel.......................... Rs 550 crs
Sell of 7% stake of NSE ................................................................ Rs 780 crs
Further value of NSE stake 5% will sell at 2000 though denied by mgmt Rs 800 crs
Expected sell of land at Sultanpur 750 acrs .................................... Rs 800 crs
IFCI has called for bids for its 750 acres land at Sultanpur. The company has already fixed the reserve price to Rs. 250 crs. A minimum estimated price of th deal will be not below Rs. 800 crs whereas it could be Rs 2000 crs on upper side. Sources claim DLF is bidder.
This means all together can bring around Rs. 2900 crs in the company which will turn the negative net worth into positive to the tune of Rs 1500 crs which will make book value at Rs 35 per share.EPS for 06-07 could be above Rs 45 per share. The stock can easily surge to Rs. 35.......at least equal to book value leaving aside the normal income of Rs 3 per share and other investments.
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