Friends,
When I gave a call on Windsor Realty ,I said that I will write on Windsor Realty lateron which I am doing now...The below article I read in BS in Oct 22,2009 and that was in my mind but I have to retrieve it hence took time to post it here.
Here in we can see that there is talk of 2 stocks....One is RPG Cable and other is Windsor Realty.We only know Windsor as Eng Co but very rare people know that Windsor has Realty arm too and it is big ....looking at the deal that has taken place with RPG .....
Here RPG is also all set for turnaround and they are bent upon to turn it around......
But that is how I came to know about the Windsor Realty Arm of Windsor Eng Ltd....a Piramal Gr of Co.......I have not digged in much after that on Windsor Realty Arm but would like to have feedbacks from readers if any on Windsor Realty.....
RPG Cables to rope in strategic investor
PB Jayakumar / Mumbai October 22, 2009, 0:01 IST
RP Goenka-promoted RPG Cables, one of the largest power cable manufacturers in the country, is planning to bring in a new strategic investor as part of a plan to raise about Rs 200 crore to clean up debts and for erecting a new facility in Gujarat.
The five-decade-old company, which got out of the ambit of the Bureau of Industrial and Financial Reconstruction (BIFR) two months ago after four years of intense restructuring, is in talks with multiple players to raise funds, said sources.
Confirming the development, Nikhil Gupta, managing director, said: “We are in discussions with various players,including group companies. But it is early to divulge details.”
Deutsche Bank had picked up a 14.9 per cent stake in the company two years earlier, for about Rs 28 crore. The bank also gave a Rs 100 crore loan to reduce debts, which had piled up to Rs 300 crore. The Harsh Goenka-led RPG Group holds 33.42 per cent stake in the company.
RPG Cables has been growing at over 50 per cent every year over four years, to reach a turnover of about Rs 380 crore. It expects to reach a turnover of Rs 1,000 crore turnover in three years, said Nikhil Gupta.
The company, with debts of close to Rs 100 crore, is planning to set up a Rs 70-75 crore invested high-tension cable manufacturing facility near Baroda, with a production capacity of 120 km length per year. A few weeks earlier, RPG Cables had sold its 36,418 sq metre surplus land at one of its manufacturing plants at Thane to Windsor Realty for Rs 51.5 crore.
The onset of the mobile phone revolution in the second half of 1990s had caused the downfall of RPG Cables, a Rs 400-crore company in the 1999-2000 period, with Jelly Filled Telecom Cables (JFTC) for landline telephones contributing over 70 per cent of the peak business. Within a few years, its Rs 270 crore peak annual revenue from the sector turned to zero and debts mounted to about Rs 600 crore. The company had to close production at two manufacturing units, at Rai Bareli in Uttar Pradesh and at Mysore.
Senior officials of the company left in bad times and employee strength reduced from 1,500 in 2000 to 400 people.( This can help a lot in expenditure) Market capitalisation shrank to Rs 11 crore and many fixed depositors demanded their money back. The power cable business worth Rs130 crore also collapsed, as creditors clamoured for money and new orders got cancelled.
Hi Rajeev
ReplyDeleteI have a few queries on Windsor.
1. Do they have that kind of cash to pull off such deal(since they have had there share of operational problems for last 8-10 years due to which they have a negative book value)
2.DGP Windsor the foreign collaborator in the company has sold 6,65,000 shares in aug sept 2009. Any specific reason behind selling this chunk.
I am looking forward to your reply.
Regards
Amit
Hi Rajeev
ReplyDeleteRPG Cables is not trading the reason is
"KEC International Ltd has informed BSE that it has fixed April 19, 2010 as the Record Date to determine the equity shareholders of the erstwhile RPG Cables Ltd. entitled to receive fully paid up equity shares of KEC International Ltd. in the ratio of 1 (one) Equity Share of KEC International Ltd. for every 20 (twenty) fully paid up Equity Shares of Rs. 10/- each held by them in RPG Cables Ltd.
What are your comments on this.
Regards
Amit
Amit,
ReplyDeleteYou have always have excellent questions that I cannot answer .....so I give a pass on your questions....I am no match to you....I am not welllearned like you in economics....
This comment has been removed by the author.
ReplyDeleteHi everyone,
ReplyDeleteJust check out RICOH INDIA currently trading at Rs 37-odd per each share of FV-10. Here are some good things:
- Completely Japanese owned and managed- Promoters hold about 73% in the company. RPG had stake in the company earlier which they sold to the foreign partner Ricoh Japan.
- Strong business model- sells both products and services. Company implements document management for Govt and pvt sector firms, gets better margins from the same as they charge per page printed. They have more focus on corporates and less on the Home market.
-Ricoh are one of the world's biggest makers of photocopiers, comparable to the American Xerox.
-There are no plants in India, so expenditure of capital is nil. Parent company is the main supplier so there are no supplier disputes.
-Completely debt free. They drew down on cash reserves to eliminate the debt, still made a profit of Rs. 12 cr last year.
-Current market cap is Rs 150 cr against FY2009-10 sales of Rs 242 cr. So it is still going cheap.
I just applied Rajeev's methods and found a winner. Thanks buddy!
Rajeev
ReplyDeleteIf some stock is getting merged in another company and is not trading then what to buy and regarding the selling of shares by DGP Windsor its on nseindia website. Where you find my questions absurd, I really don't understand. At one place you say to do your own due diligence and on other hand you pass such sarcastic remarks.
Regards
Amit
Amit,
ReplyDeleteIt is a pity that none is feeling offending except you....apne under jhanko.....kya problem hai...why it is that u feel like that and no one else?
Amit,
ReplyDeleteIt is simple that if RPG is not traded then one have not to think on that....if DGP Windsor is selling and one feels not convinced then don't buy....where I come?
I have written many times, I don't read BS, AR, Cash Flow and still you ended up asking me about that?Shall I show your mail here on the blog?You have delibaretly tried to put me in such position...in recent past also you ended up asking about stock which I donpt track and you objected that I should give my opinion....you have always tried to force me to reply you ask and if I do not you have wrongly retaliated....I have spoken many times, I have my own JOB in USA, I have my duites as well to peform and after that all these comes....when you know that such questions irritates me, you still keep on asking me that...just to disturb me....and unnerve me.........I again caution you, be respectful and be polite...If I do not want to answer , I have every right to do that...
Starting a blog and answering queries to readers do not imply that I have become a slave and I am at behest of people like you who gets disturb and keep on irritating me....I have found since long that you try to show your expertise by asking me questions which are bookies....and I have written umpteen times...I am not a MBA or CA...
You are trying to show that my call were wrong....while asking me such questions...that is a very bad mind..
Rajeev
ReplyDeleteI am one of your biggest admirers, if you trust me. At the same time I just want to probe on my findings by getting your view on that and believe me that is it,In no way I want to irritate you or to prove you wrong and who am I in front of you.
The kind of accuracy you have on your calls and research and the various articles on various subjects you put together for your followers/readers is just tremendous. I am again putting it across to you in most humble and polite manner that I never tried to belittle you or tried questioning your intentions. Rajeev you have your duties and priorities to fulfil and I request you that don't use words like "Slave" as it doesn't look good and all your readers must have benefitted immensely from your calls and are still benifiting. Personally last thing to you that you have a extremely wrong perception about me which I would like that you change because I am not that kind of person what you think I am.
All the Best.
Hoping to meet you in person someday.
Best Regards
Amit
I want to add more of kpit and spanco
ReplyDeleteAre they still a buy at currant levels???
best wishes
sandeep
Dear Sandeep,
ReplyDeleteRead messages of rajeev and find out if they are still a buy or not.
By asking rajeev again and again on the same stocks that he has already written about will not be appreciated by him.
Ofcourse if you come across any new development in the stock that he has mentioned you can write here and get his opinion.
Just my view as I consider Rajeev super good and I would let him just come out with more and more unknown gems from which we all can benefit
And yes Spanco is still a buy despite a 10% upmove. If you still want to try and time it then wait for 83-84 levels. It has jumped from this levels many a time.
ReplyDeleteSame with Sujana towers. If you want to invest buy at the current price and just forget and if you want to trade buy around 50-52 and sell around 56-58
Dear Rajeev,
ReplyDeleteAs you have asked about companies which have land bank in banglore. I just looked at rajesh export had land bank of 32 properties. but its equity is very big.
Dear Think Tank,
ReplyDeleteI am from bangalore too. Just cant trust the management.
Jitendra Kumar Gupta / Mumbai April 22, 2010, 0:27 IST Business Standard
ReplyDeleteHigh demand, growth of oil exploration & production augur well for pipe makers.
New orders from international markets and massive expansion plans of domestic oil and gas majors could signal a revival for Indian pipe companies.
The pipe sector went through a lean patch last year due to the global slowdown in oil exploration and production (E&P) activities. However, the recent flow should keep order books of companies in this sector robust and translate into higher revenues.
The domestic pie
India’s largest gas company, GAIL, which operates about 7,200 km of pipelines, recently announced plans to put up an additional 1,000 km by the end of this calendar year and a total of 5,000 km by 2013. The company has outlined investments of $6-7 billion (Rs 28,000-33,000 crore) in the next five years.
These investments are almost equal to the amount it had invested in the last 25 years. GAIL’s decision to expand its pipe network would help it meet the increasing demand for gas. While India has a supply deficit, the situation is expected to improve as a result of the new gas discoveries in the country by RIL, ONGC and others. Currently, the gas supply is about 135 mscmd; this should go up to 215-220 mscmd by 2014. This will require large investments in improving and expanding the network.
Water transport
Demand is also likely to come from the increasing expenditure on urban infrastructure and water transport projects. According to Crisil, over the next three-four years, Rs 2,65,000 crore will be invested on urban infrastructure, a three-fold increase compared to the Rs 85,300 crore invested in the past four years. The players who will benefit the most from these new investments are Jindal Saw and PSL.
Jindal Saw
In the water and sewage segment, ductile iron (DI) pipes are used, where Jindal Saw is the leader, with total capacity of 3,00,000 tonnes, which the company is increasing to 5,00,000 tonnes by June 2011. The company is also active in the export market, supplying pipes for gas pipelines.
PSL
PSL is another key player in the domestic market. The company makes HSAW pipes, used in the transportation of oil and gas, water and sewage. These pipes are cost-effective and help PSL price its products competitively.
International markets
ReplyDeleteThe outlook for pipe companies in the international markets has also improved on the back of recovery in crude oil prices, leading to higher E&P expenditure. According to the global research agency Simdex, 714 pipeline projects of 3,24,301 km are to be implemented over the next five years. The demand is estimated to be coming largely from North America, Asia and the Gulf countries.
Analysts believe the sector is likely to witness a change in fortunes. Says Pritam Lala of Batliwala & Karani Securities, “A number of pipeline projects were stopped during the recession but are now being revived and new projects are also being announced or will be awarded in the near future.”
The revival in prices of crude oil is also helping to justify the costs of exploration. “E&P activities are viable only if the crude oil trades above $50-55. We have already seen recovery in crude oil prices and thus improvement in global E&P activities,” says a SBI Capital analyst who tracks the pipes sector. Besides the demand for the new pipelines, according to Macquarie Research, the replacement of old pipelines laid during the 1960s and 1970s would generate significant demand for SAW (submerged arc welded) pipes. The brokerage expects that 50,000 km of pipelines would need to be replaced in the next five years, which may in fact turn out to be conservative, as 1.8 million km out of a total 2.7 million km of pipelines in the US are over 30 years old and will need to be replaced.
High on exports
Some Indian companies have already bagged a couple of orders in the export market and the trend is likely to continue, believe analysts. Companies such as Maharashtra Seamless will be key beneficiaries; this company manufactures high-pressure seamless pipes, used in oil and gas exploration.
In the transport segment, Welspun Gujarat Stahl Rohren and Man Industries are key players in the international markets. Welspun Gujarat generates almost 80-85 per cent of its revenue from international markets. “International companies in the oil and gas sector were earlier not awarding new projects, simply because commodity prices were falling and nobody wanted to catch a falling knife. But, commodity prices have now stabilised and the companies have now committing investments as a result of which we are getting lot more enquires,” says Akhil Jindal, Director, Welspun Gujarat. The company has an order book of Rs 7,800 crore, which provides good revenue visibility
Rajivji
ReplyDeleteyour spanco and PAEL well do today.I am very bullish on spanco and geomatry.
my target is very very high in spanco and when spanco cross 100 everybody see the magic of Rajiv Desai but geomatry not moov from 67 give some push to geomatry also.
awaiting your early reply
JC
ReplyDeleteif i m not wrong than ricoh india formely known as GESTETNER INDIA
Ashok,
ReplyDelete"give some push to geomatry also".....what does that mean?I am not an operator....
Rajiv ji
ReplyDeletei know very well you are not operater but some operater follow your recomandation because they always make money on your recomandation.
Actually Ricoh took over Gestetner's business in India and gave VRS to all the employees, Ashok. Anything you like about the company?
ReplyDelete