The stock has been buzzing on the bourses since the past week and this has nothing to do with the core business of the company – polyster and textiles. It is more on account of its amobitious realty foray which has turned the company into a milch cow.
Its realty arm, Bombay Dyeing Realty is developing two projects in Mumbai. One is located in Dadar, Naigaum. This is spread over an area of 45 lakh sq.feet and it is being developed as a mix of both residential as well as commercial properties. The present value is around Rs.8000/sq.feet. This means, the property is Naigaum is valued at Rs.3600 crore. And here, Bombay Dyeing is selling flats at Rs.16,000 per sq.feet. The other property is in Worli and this is measured at 48 lakh sq.feet. Valued at Rs.12,000/sq.feet, the total value of this Worli property is Rs.5600 crore. For both the properties, contract has been given to L&T, which was 12 months ago and the total deadline for completion is 48 months.
Apart from development, there is really nothing too encouraging happening in the company’s core business. Its financial performance for Q2 ended 30th Sept 2009 continued to remain in the red on the net levels. The only gratifying part was that the net loss had come down and it managed to post profit before interest, depreciation and taxation. Net loss was at Rs.11.05 crore v/s 19.69 crore loss in Q1FY10 and much better than Rs.103.97 crore loss in Q3FY09.
Polyester continues to remain its main fray though the income earned from realty is also getting to be quite substantial. In Q2FY10, realty contributed 33% to the topline, which in Q1FY10 was at 31% and in Q2FY09 was at a meager 6%. Polyester in current Q2 contributed 48% to the topline while textiles contributed 19%.
Realty is giving the fillip to the stock as well as the company. It is expected that the company by 2011 or 2012, would demerge its realty arm and consider listing it too.
Source: Internet (by S P Tulsian)
Its realty arm, Bombay Dyeing Realty is developing two projects in Mumbai. One is located in Dadar, Naigaum. This is spread over an area of 45 lakh sq.feet and it is being developed as a mix of both residential as well as commercial properties. The present value is around Rs.8000/sq.feet. This means, the property is Naigaum is valued at Rs.3600 crore. And here, Bombay Dyeing is selling flats at Rs.16,000 per sq.feet. The other property is in Worli and this is measured at 48 lakh sq.feet. Valued at Rs.12,000/sq.feet, the total value of this Worli property is Rs.5600 crore. For both the properties, contract has been given to L&T, which was 12 months ago and the total deadline for completion is 48 months.
Apart from development, there is really nothing too encouraging happening in the company’s core business. Its financial performance for Q2 ended 30th Sept 2009 continued to remain in the red on the net levels. The only gratifying part was that the net loss had come down and it managed to post profit before interest, depreciation and taxation. Net loss was at Rs.11.05 crore v/s 19.69 crore loss in Q1FY10 and much better than Rs.103.97 crore loss in Q3FY09.
Polyester continues to remain its main fray though the income earned from realty is also getting to be quite substantial. In Q2FY10, realty contributed 33% to the topline, which in Q1FY10 was at 31% and in Q2FY09 was at a meager 6%. Polyester in current Q2 contributed 48% to the topline while textiles contributed 19%.
Realty is giving the fillip to the stock as well as the company. It is expected that the company by 2011 or 2012, would demerge its realty arm and consider listing it too.
Source: Internet (by S P Tulsian)
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