Stock Picks for 2008: "Forbes and company
a least researched company.
potential target price above 5000
cmp just 600 rs
current mcap just 720 cr
company owns 100% of euraka forbes( 700 cr sales and 27 cr net profit)
euraka forbes has shown a cagr of 35% in top and bottom line in past 3 years
company also own huge real estate
swadeshi mills(22% owned and promoted by forbes)which owns 22 acres of prime land in kurla
forbes stake valued at around 1200 cr
company has huge land bank in it factory in thane and chANDivali in mumbai
company also has 49% in forbes infotainment limited(dhandhan online lottery and will be launching retail financial stores ) throughout india.
Forbes Company (formerly Forbes Gokak)
BSE: 502865
NSE: FORBESGOK
Date: December 24, 2007
Closing price: Rs 560.55
Description: The Shapoorji Pallonjee Group which took over Forbes
Company from the Tatas has begun a process of unlocking value within
the company.
Earlier in 2007, the promoters who have a 73 per cent stake in Forbes
Company (formerly known as Forbes Gokak), de-merged its subsidiary
Gokak Textiles into a separate company. The Board of Directors of the
Forbes is mulling ways to unlock more value into the company by way of
de-merging more subsidiaries. Some of the company's profitable
divisions are also likely to be hived off into separate companies
unlocking further value.
At the closing price of Rs 560.55 on December 24, 2007, the market cap
of Forbes Company is a mere Rs 723 crore. Though its present price to
earnings ratio is high 40.13, I believe the markets have discounted"
