In August 2010 when checking out Emami Infrastructure I had blogged that Zandu Realty at Rs 3100 looked interesting
Emami Infrastructure Ltd at Rs 91…..Listed on July 28,2010 with suspicious and crazy gyrations of near Rs 600 on the upside and below Rs 90 on the downside…What’s the Story!?
Sunday, August 1st, 2010
Since then Zandy Realty dipped to Rs 2000 levels and looked and even lower risk buy…In the past two days there have been simply crazy volumes …On Friday BSE recorded 2.3 lakh shares while NSE scored a volume of 4.4 lakh shares !…that’s an aggregate turnover of over Rs 180 crs in a single day on the bourses !….and the market cap is Rs 225 crs !….so obviously there’s more than meets the eye in the trades of the past two days and there are Corporate Governance Issues of the Emami Group and the Anand Rathi Group that beg for caution…Rathi is a Director on Board of Zandu Realty
In just Two days,Thursday and Friday Zandu Realty has zoomed on aggressive buying from Rs 2000 to Rs 2800 + giving a 40% return
Rumours of liberal Bonus and Split are in the air…Book Value at March 31,2010 was over Rs 300 for a FV Rs 100 share…Equity is a shade over Rs 8 crs while Reserves are double this
But what really got my attention in August 2010 was that this Company is simply holding 2.4 acres in Prime Dadar area in Mumbai….the current value is easily Rs 500 crs in an undeveloped state while the Market Cap today is Rs 225 crs…it has no debt….the FMCG Business,Zandu Balm and all was transfered to the new Owners Emami Ltd from this company and it’s name changed from Zandu Pharmaceuticals to Zandu Realty…this was and remains my contrarion Real Estate Sector Call…In a developed state this Dadar Property is worth probably near Rs 1000 crs ! even if it has to factor in 20% saleable area for the less lucrative middle class housing segment which is now made mandatory in Maharashtra State
….a naughty rhyme……
Pandu bought some Zandu with some Money
And today that G____ has more than one Honey !
….am quite sure many of you are now tempted to become Pandus !