[T.S.R:16851] Raymond-A Rs 1600 Crore market cap for a company that makes a loss of Rs 115 cr in one quarter?

Raymond Ltd-Poor Mgt, losing business & a Market Cap of Rs 1600 crore? Why not just Rs 16 crore?

Except for a world record of sorts made by the chairman VijayPat Singhania of flying across the World on a micro-light aircraft, the corporate has lost everything for the shareholders. 

-Sheep Breeding farm set up to produce Merino wool in India failed. Closed.

-Made massive losses in sponge iron unit Vikram Ispat and then sold it off.

-Made massive losses in Cement Unit and then sold it off.

-In the December 2010 quarter sold off its Engineering Files division and reported a loss of Rs 115 crore on a Turnover of Rs 450 crore.

 

-Now it is getting rid of all the workers in Thane, so that the industrial plot of land can be sold off.

 

The questions to be asked however are: Can the industrial plot get the price of either a residential or commercial piece of land?

Second, Bayer has for years tried to sell off it's Land in Thane but failed, so what guarantee does exist that Raymond can pull off the sale? And will this price of Land exceed the Market Cap of Rs 1600 crore and will be distributed to shareholders?

 

If not, then as a massively loss making entity with no record of success at any venture including the historical clothing and garment business of Raymond Fabrics, Showrooms and ColorPlus, should the stock not quote in the sub Rs 10 per share category ?

 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

 

Nothing in this article is, or should be construed as, investment advice.

 

 

 

 

 

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