[T.S.R:18215] Suashish Diamonds-EPS Rs 20, Investments Exceed Market Cap By Rs 200 crore

Suashish Diamonds-An Opportunity That Seeks Attention

A De Beers/DTC Sightholder

 

-Promoter Equity 90 per cent

-Public Holding 10 per cent, out of which Religare holds 5 lakh shares and corporate bodies the balance.

-Company has to delist or comply with public holding norm of 25 per cent by June 2013.

-Current Market Cap Rs 200 crore

-Estimated FY12 EPS Rs 25

-Estimated PE 4

 

-Company through Mr. Ashish Goenka made an offer to BUY the 10 per cent public Equity at Rs 210 per share or double the current price.

 

-As of March 2011 Suashish Diamonds has investments in liquid corporate debt of Rs 400 crore or twice the current market capitalisation in cash equivalents.

-Return on these investments alone work out to atleast Rs 10 per share.

-The promoters can now make another attempt to delist as 1 year has lapsed over the previous offer, and at current price it will cost them just Rs 20 crore to delist the company.

 

-The Book value should however exceed Rs 300 and investors must take small exposure for this possibility.

 

 

 

 

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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