FY 12 Performance ~ An Easy First Impression to Have ~ ‘Sell Your Wife & Buy the Stock ! ‘
One Can actually Buy this Full Company Out at just a little over One Year Profits ! as Market cap is just Rs 550 crs and FY 12 Consolidated PAT was Rs 461 crs !
Incredulous Consolidated Results !….Yet Shree Ganesh Jewellery is @ just Rs 91
Operating Income ~ Rs 10121 crs
Market Cap ~ Rs 550 crs
Networth ~ Rs 1569 crs
Equity ~ Rs 60.68 crs (FV Rs 10) with 70% held by the Promoters ~ Kolkatta based Parekh Brothers
Book Value ~ Rs 259 per share => PBV of just 0.35 !
PAT ~ Rs 461 crs ~ Nearly all of it from Jewellery Business as Power Business yet to take off
EPS ~ Rs 76 => PE of just 1.2 !
Dividend ~ 60% or Rs 6 per share => Yield of 6.6%!
Incredulous !?
Not Quite if you Check out some Company, Investor and Price Behaviour History….Clearly the Markets simply don’t trust this Company and it’s Financials
Two Years ago when the Company came out with an IPO at Rs 260,there were some crazy Investor Behaviour and Price Trends on Listing with the Share Price collapsing to Rs 160 levels and a Standard Chartered FII Fund selling out first day itself at a huge loss !…I had blogged on this
Interesting and Amusing….Shree Ganesh Jewellery House Ltd prices it’s IPO at Rs 260…lists much lower on April 9,2010 and closes at Rs 163…and on this first day itself Standard Chartered Bank (Mauritius) Limited A/c Emerging India Fund sells at a huge loss,over half a million shares in a Bulk Deal at Rs 169.23 !
Monday, April 12th, 2010
What’s Happening Here !?…..Auditors Chaturvedi and Partners have given a Clean Chit to the Company but Methinks SEBI and the Exchanges too need to give it one too if there is nothing more than what meets the Eye !
I reiterate ! ~ How can one be able to Buy this Company out at just One year profits !?
Am I just unnecessarily creating a racket about some racket ! ?….should not Shree Ganesh Jewellery be a Multibagger Stock with Share Price targets over Rs 300 from just Rs 91 today !?
You Tell Me !
4 thoughts on “Shree Ganesh Jewellery @ just Rs 91 with PE of just 1.2 & PBV of just 0.35 ! ~ Book of Rs 259 ~EPS of Rs 76 and a Dividend of Rs 6 !? ~ Incredulous!? Not Quite if you Check it out some More”
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This share will outperform now, dividend declaration will increase the investor confidence after superlative profits, makret can not ignore this now and once it close above Rs 120 , people will run to chase
I have been studying this stock as well but so far have not come up with a good reason for the price. The only explanation could be that the receivables of the company which are very high could not be materialzing. I would love to discuss this stock with you. Thanks
Hi Ashwini,
Obviously there is more to this Company than just it’s book fundamentals that is making the market wary and keeping the price way lower at Rs 103 than what it’s fundamentals should be driving ….in simple words the fundamentals are simply not being trusted even though audited ~ don’t go by the book !….so discussing book we’ll not make much headway….best left alone is my advice …. Insiders know better
Cheers,