· GTC Industries is a Sanjay Dalmia group company engaged in manufacturing cigarettes with an installed capacity of 17,322 million cigarettes per annum.
· For FY 07, the total income of the company was placed at Rs.201.15 crores, PBT of Rs.27.65 crores and PAT of Rs.51.72 crores. The increase in PAT over PBT is due to tax refund of Rs.24.07 crores.
· The present equity of the company is at Rs.17.60 crores, of which 44.44% is held by the promoters, while balance is by the public.
· For June 07 quarter, total income was placed at Rs.47.14 crores, PBT of Rs.5.25 crores and PAT of Rs.3.95 crores giving an EPS of Rs.2.22.
· Sanjay Dalmia has been recently appointed as Chairman of the company while Anurag Dalmia as Vice Chairman.
· The net worth of the company became positive from FY 07, and hence the company was discharged as sick company, by BIFR, on 29-06-07.
· The concern is on the pending income-tax appeals, against the company, with Apellate Authorities, for I-Tax demand of Rs.762 crores and penalty of Rs.488 crores. However, management is confident of winning these appeals, as similar appeals have gone in company’s favour.
· The company has real estate, in the form of huge land, at Hyderabad, Vadodara and Mumbai and also have necessary exemption under Urban Land Ceiling Act for land in Maharashtra and Andhra Pradesh.
· The company intends to develop its Hyderabad Property in immediate future, either through joint development or alone. The company also has property at Vadodara which could also get unlocked either by development or outright sale.
· The company has two running plants in Mumbai, one at Vile Parle and another one at Chakala, commercial suburbs of Mumbai. The company may shift its operations of Vile Parle unit to Chakala and may develop Vile Parle property.
· Vile Parle property has developable area of about 15 lakh sq. ft. which could be developed as a commercial hub, as it is ideally located on S. V. Road. This property is valued at Rs.2,500 crores.
· All the properties of the company are valued at over Rs.3,000 crores, including Chakala property, which is about 2.5 acres, valued at close to Rs.300 crores.
· The company is debt free, net off cash and bank balance. This is a remarkable feat for the company, as it recently, came out of BIFR and is now debt free.
· The share of the company is ruling at Rs.270 which works into a market capitalization of Rs.475 crores. This kind of valuation gets attributed to its core business, due to some of the strong brands of cigarettes of the company. Realty valuation comes close to Rs.1,700 per share.
· Share is a good bet at Rs.270 levels, mainly considering its realty values, which would get unlocked, sooner or later. Investors having long term horizon, can buy the stock.
· For FY 07, the total income of the company was placed at Rs.201.15 crores, PBT of Rs.27.65 crores and PAT of Rs.51.72 crores. The increase in PAT over PBT is due to tax refund of Rs.24.07 crores.
· The present equity of the company is at Rs.17.60 crores, of which 44.44% is held by the promoters, while balance is by the public.
· For June 07 quarter, total income was placed at Rs.47.14 crores, PBT of Rs.5.25 crores and PAT of Rs.3.95 crores giving an EPS of Rs.2.22.
· Sanjay Dalmia has been recently appointed as Chairman of the company while Anurag Dalmia as Vice Chairman.
· The net worth of the company became positive from FY 07, and hence the company was discharged as sick company, by BIFR, on 29-06-07.
· The concern is on the pending income-tax appeals, against the company, with Apellate Authorities, for I-Tax demand of Rs.762 crores and penalty of Rs.488 crores. However, management is confident of winning these appeals, as similar appeals have gone in company’s favour.
· The company has real estate, in the form of huge land, at Hyderabad, Vadodara and Mumbai and also have necessary exemption under Urban Land Ceiling Act for land in Maharashtra and Andhra Pradesh.
· The company intends to develop its Hyderabad Property in immediate future, either through joint development or alone. The company also has property at Vadodara which could also get unlocked either by development or outright sale.
· The company has two running plants in Mumbai, one at Vile Parle and another one at Chakala, commercial suburbs of Mumbai. The company may shift its operations of Vile Parle unit to Chakala and may develop Vile Parle property.
· Vile Parle property has developable area of about 15 lakh sq. ft. which could be developed as a commercial hub, as it is ideally located on S. V. Road. This property is valued at Rs.2,500 crores.
· All the properties of the company are valued at over Rs.3,000 crores, including Chakala property, which is about 2.5 acres, valued at close to Rs.300 crores.
· The company is debt free, net off cash and bank balance. This is a remarkable feat for the company, as it recently, came out of BIFR and is now debt free.
· The share of the company is ruling at Rs.270 which works into a market capitalization of Rs.475 crores. This kind of valuation gets attributed to its core business, due to some of the strong brands of cigarettes of the company. Realty valuation comes close to Rs.1,700 per share.
· Share is a good bet at Rs.270 levels, mainly considering its realty values, which would get unlocked, sooner or later. Investors having long term horizon, can buy the stock.
Source: sptulsian.com
