Aditya Birla NUVO-A diversified play!
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=305
Printed Date: 28/Apr/2024 at 10:19pm
Topic: Aditya Birla NUVO-A diversified play!
Posted By: basant
Subject: Aditya Birla NUVO-A diversified play!
Date Posted: 09/Sep/2006 at 1:05am
|
AV Birla NUVO –Value of embedded businesses are twice the market cap Aditya Birla Nuvo (CMP Rs 836) is a classic play on the Indian http://www.theequitydesk.com/forum/forum_posts.asp?TID=259 - emerging sector theme . The company holds interests in businesses like Insurance, Telecom, Branded clothing and Asset management. The company is overly diversified into a set of old and new businesses. Since the growth in new businesses is stronger then the growth in old businesses the share of the old business is coming down.
There is nothing to write about AV Birla NUVO’s financials. The company is sitting on a clutch of income streams that are yet to materialize. The best part about AV Birla Nuvo is its RoE. At less then 7% people would discard it but that is the opportunity. Most of its new businesses like telecom and insurance are yet to reach scale. With continuing thrust on these divisions the company is available at a very steep discount to what it could be had these businesses been split up. I have tried to discuss the newer business since that is the growth engine. The company is a growth cum value play. We shall see as we get along. Telecom: n AV Birla Nuvo holds 35.74% stake in Idea Cellular Limited. n Idea Cellular Limited is a profit making cellular company operating in eight telecom circles. n Idea has a 8.1% market share circles with a subscriber base of over nine million. n Expected rollout at 3 new circles this would increase its presence to 11 circles. n The company recently completed an acquisition for 15% of Idea at Rs 1372 crores. Now if we compare this value in Idea to the listed telecom player “Bharti Airtel”. The numbers that I get are mind boggling. I could have deducted 40% from that number since Bharti is the market leader with foreign promoters and other businesses. On the other hand idea shall benefit because it is getting into 3 new circles and that can ramp up growth over the next few quarters while http://www.theequitydesk.com/forum/forum_posts.asp?TID=221 - Bharti Airtel is already is spread out..
Asset Management n The Domestic AUM increased to Rs 14,611 Cr from Rs 11,457 Cr in Q1 FY06 n Share of equity is 26% n Offshore funds grew by 94% to Rs 1198 Cr. n Higher share of equity component. n The company also has a share in the corporate finance business.
Insurance http://www.theequitydesk.com/forum/forum_posts.asp?TID=202 - Insurance as business model is insulated from recession and with telecom is the only sector where at company enters a new year with assured customers (the ones who are already running a policy. During the quarter the company invested Rs 30 crores as capital in its insurance JV “Birla Sun Life Insurance Company Limited”
Garments n Fashion Brands have been registering a strong growth of 22% n The company is trying for a renewed thrust on exports business n Tied up 1.2 lac sq ft of retail space in upcoming malls n New large format exclusive brand outlets to be opened n Despite high advertisement for new collections and brand building Peter England’s expanded reach led to robust growth
BPO & IT Services Signed agreement to acquire Minacs Worldwide Inc Deal size estimated at US$ 125 million. The company is trying to increase its off shoring mix. Significant stride towards gaining strength in BPO through increased share of high margin offshore revenues and improved manpower utilization.
Other businesses
Recommendation: It is a no brainier Av Birla Nuvo is a great buy. Now I was worried with the numbers that I was getting (and checked again) since it seems to be very large. I have also made a 40% provision for the telecom business and 30% for the insurance business (in valuations) when comparing it to Bharti Airtel and HDFC. The stock could double from here very easily. On the other hand all declines are great opportunities for buying. In case the company decided to spin off these business then valuation could rise multifold in no time. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Replies:
Posted By: PKB2000
Date Posted: 09/Sep/2006 at 1:13am
|
I was a customer of IDEA a few years ago and when I compared my present service of reliance Infocom compared to IDEA service I think IDEA serve customers better.
Though I have shifted to reliance communication to get Mobile net connection about two years back but till I feel the differences and I appreciate the service of IDEA. I have heard IDEA can go for IPO. Is that correct? ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: basant
Date Posted: 09/Sep/2006 at 1:20am
|
Yes it would go for an IPO. Two years back Indian Rayon I guess still held some stake in IDEA and a http://www.theequitydesk.com/forum/forum_posts.asp?TID=23&KW=lynch&PID=134#134 - Peter Lynch way of buy what you see would have made you a 6 bagger in this stock!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: reetesh
Date Posted: 09/Sep/2006 at 1:23am
|
But unless they dont do spin off, this value will not get materialised, look at HDFC or ICICI or for that matter Rel. Capital because the value you are talking about they never trade at par, but once they spin off then your prognosis is correct, but I dont think thats gonna happen in near future, if I am not mistaken they merged Indo Gulf and Birla global finance to Aditya Birla Nuvo and if this is correct then they have no plans for spin off in near future, but it has value there is no 2 ways about it. Correct me if I am wrong about Indo Gulf and Birla Global Finance merger..
Regards,
Reetesh. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: basant
Date Posted: 09/Sep/2006 at 1:39am
|
That merger did not happen in public interest as far as I could make out of it. The ratio was favourable to Birla Global in which Kumar mangallam held a larger stake.
Idea is planning for an IPO very soon. The Insurance, venture has been compared to HDFC (which is still with the parent) and there too I have taken a discount of 40% and 30% respectively.
This stock represents real value and this val;ue will keep on increasing as the gains from the growth businesses accrue.
Even if the http://www.theequitydesk.com/forum/forum_posts.asp?TID=261 - spin off does not happen It is a great play for any one who is afraid of the http://www.theequitydesk.com/forum/forum_posts.asp?TID=259 - emerging sector and yet wants to participate. Even if the discount is constant the company shall keep growing at 30%.
It is something like the http://www.theequitydesk.com/forum/forum_posts.asp?TID=133 - Morgan Stanley growth fund that we discussed earlier. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: reetesh
Date Posted: 09/Sep/2006 at 1:47am
|
Unless name has changed of these companies Indo Gulf and Birla Global Finance, they are merged into something I myself did`nt make out I am confused but I checked when your earlier report came out about making money from spin off`s there I pointed about Aditya Birla Nuvo, I am not saying that you were not aware about it after that discussion I checked, then I read about it they were supposed to get merged but I could not make out that they are merged, then where are they? Indo Gulf & BGF. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: reetesh
Date Posted: 09/Sep/2006 at 1:59am
|
Unless name has changed of these companies Indo Gulf and Birla Global Finance, they are merged into something I myself did`nt make out I am confused but I checked when your earlier report came out about making money from spin off`s there I pointed about Aditya Birla Nuvo, I am not saying that you were not aware about it after that discussion I checked, then I read about it they were supposed to get merged but I could not make out that they are merged, then where are they? Indo Gulf & BGF. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: basant
Date Posted: 09/Sep/2006 at 8:33am
|
They have merged all the companies now. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 10/Sep/2006 at 3:26pm
|
Basantjee
Great analysis about AB Nuvo! Even if you further discount your discounted valuations, this scrip could give handsome returns of min 40% from here.
In capital markets & investing, no one wants to be alone. So we keep on looking for opinions supporting our own. AB Nuvo is such a case. I have been accumulating this sub 700 levels!
Another point I want to make here is its okay to look for multi-baggers, but investors should be satisfied with a benchmark average annual return of 20 to 25% from equities. This is a reasonable figure looking at the risk over fixed income securities.
What do you feel? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: s_praharaj
Date Posted: 10/Sep/2006 at 3:30pm
|
Thanx for the analysis on Aditya Birla Nuvo.
I bought some 50 shares, when it was 700.
What I find about them is, they are in highly competitive business.
Idea Cellular has to see a lot of competion in the days to come, Their Insurance business will also see a lot of competition with thinning out of the margins.Of course, they may get better revenue from Birla Global Finance and Indo Gulf Fertilisers.
Though I don't see a five bagger, I hope a modest 50% growth in two years. ------------- Shashi Praharaj |
Posted By: kaushalchawla
Date Posted: 10/Sep/2006 at 7:50pm
|
Basantji,
I wanted to request you to do some analysis of AV Birla NUVO and it was done without asking.....getting some powers or what??
thanks for the analysis.
Regards,
Kaushal ------------- Warm Regards, Kaushal |
Posted By: omshivaya
Date Posted: 10/Sep/2006 at 8:47pm
Hehe:-) Basant jee ki JAI! ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 10/Sep/2006 at 9:15pm
|
"but investors should be satisfied with a benchmark average annual return of 20 to 25% from equities" - I would entirely endorse that opinion.
WHen we look at stocks I doubt if any one could just puck up a stock and say " hey this is a ten bagger". The initial reaction and analysis is always on hope - the sweet four letter word. As things start unfolding this hopw turns into conviction and finally belief.
AV Birla Nuvo is not a new concept it was there for at last 3 years. that is the time period from where I have been tracking it.The Birlas and TATAs went head on on "Idea" and that disturbed the value unlocking process. Once IDea come out with an IPO the public will stand up and say hey 50% market share to Bharti let us value it at 30% to Bharti.
Once Idea gets a valuation Of Rs 24,000 crore the next question people would say if I have to pay Rs 24,000 crore to buy Idea seperately lett me within that valuation (35.74% of Rs 24,000 crore) buy Nuvo.That works out to Rs 1027 per share of Av Birla Nuvo.That means 25% then current price plus the other businesses FREE.
The call is are we prepared to wait for the IDEA IPO and my sense is we should be.KM Birla has big plans for telecom and he would need to take it public.
Idea is just one of the triggers but the most likely and immediate one. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: investor
Date Posted: 11/Sep/2006 at 3:01pm
|
News from todays ET, they are planning a rights Aditya Birla to raise $168.5 mn MUMBAI: India's diversified Aditya Birla Nuvo Ltd said on Monday it would raise up to Rs 7.8 billion ($168.5 million) through a rights equity issue to repay debt and for other purposes. Shares in the company, which makes chemicals and has interests in financial services and telecommunications, were down 1.3 per cent at Rs 825 in a weak Mumbai market. http://economictimes.indiatimes.com/articleshowcnews/1979220.cms Basant, what effect, if any, do you think this rights issue will have? |
Posted By: basant
Date Posted: 11/Sep/2006 at 3:11pm
|
KM Birla has big plans for retailing. He intends to spend Us $ 1 billion over the enxt couple of years to get into the retailing segment. My sense is that this venture should be done through Nuvo since it is already doing some retail sales through 1.2 lac sq feet and it brings them synergies with insurance amd telecom and more importantly the branded garments business.
This is not confirmed though. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 14/Sep/2006 at 9:03pm
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kulman
Date Posted: 20/Sep/2006 at 5:49pm
|
Today's news: Aditya Birla Nuvo Ltd has informed BSE that the Board of Directors of Transworks Information Services Ltd (Transworks), a wholly owned subsidiary of the Company has allotted 27,53,333 equity shares of Re 1/- each to RHCP (representing 11.72% of share capital of TransWorks). Consequent to the above, the shareholding of the Company in TransWorks is reduced from 100% to 88.28%. Accordingly, Transworks has ceased to be a wholly owned subsidiary of the Company. Basantjee
Will there be any impact on ABNuvo's books? Still Transworks will remain its subsidiary, but not a wholly owned. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 20/Sep/2006 at 6:08pm
|
AB NUVO was not deriving any significant revenue from Transwork so a 12% dilution in holding would not matter to the company as a whole. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nav_1996
Date Posted: 20/Sep/2006 at 7:16pm
|
Folks, don't mind I am trying to come up with what can go wrong with AB Nuvo and hence may not become a substantial wealth creator.
Have we looked at AB Nuvo from their ability to execute? I think PSI Data is glaring example of their inability scale up new businesses. Not so sure how Transworks is doing. But bottomline is that both these spaces have got too crowded for any new large player to emerge. Now coming Ito dea, by the time they come up with IPO this segment will get to a different level due to technological disruptions and massive scale up by Bharti and Relaince. I am also not confident about their retail plans. If they go ahead with aggressive retail plans with their own brands it will create a conflict with other distribution channels. So it more like a holding company with appropriate discounting. |
Posted By: reema
Date Posted: 05/Oct/2006 at 12:51pm
|
HSBc global took 899950 shares at Rs 875.50 yesterday in a block deal from capital research Shoulkd have been better if they had bought this from the general market then a block deal.
------------- You should try to add wealth not multiply it |
Posted By: investor
Date Posted: 05/Oct/2006 at 12:58pm
|
Reema, It dosent work like that. Whenever someone wants to buy a huge volume of shares, if they attempt to buy it in the open market, that itself will cause the price to go up, as they will continuously be putting in BUY bids of smaller quantities...and when people look at the bid/ask queue they will realize that someone wants to accumulate, and the sellers automatically raise their offer prices. So at the end of the day it may appear foolish, but actually its the correct way to go. Why do you think they have the concept of "block/bulk deals" in the first place? Everyone might as well buy from the open market, isnt it? Hope this helps. BTW, i also had this same doubt as you when i started out investing...
|
Posted By: basant
Date Posted: 05/Oct/2006 at 1:59pm
|
Reema: You are probably thinking that had they bought from the open market the stock would have zoomed up to Rs 1000 now consider this had Capital research sold in the open market the stock could have hit Rs 700 so it is a double edged stock and no one would have liked to transact at these two prices levels since it would not have made sense to any one of them. Generally these trades are rpedetermined. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 28/Oct/2006 at 3:16pm
|
http://economictimes.indiatimes.com/articleshow/192693.cms - Sanjeev Aga becomes Idea Cellular MD In a major reshuffling of portfolios in the Aditya Birla Group, Sanjeev Aga will take over as the managing director of Idea Cellular while Bharat Singh will replace him as the managing director of Aditya Birla Nuvo with effect from November 1.
Incidentally, both Mr Aga and Mr Singh are alumni of IIM-Kolkata. The 54-year-old Mr Aga joined the group in 1998 as the CEO of the telecom joint venture Birla AT&T and went on to become Idea Cellular’s CEO.
ET reported on Friday that Chrys Capital has invested almost Rs 550 crore in the company. Earlier, Providence Partners bought a 16% stake for Rs 1,850 crore. Idea Cellular is the fifth-largest wireless telecom operator in the country with a subscriber base of 10.4m. -------------------------------
Does anyone have any idea, whether & when Idea Cellular is lkely to go public. Will that be a major trigger for value unlocking in AB Nuvo?
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 28/Oct/2006 at 3:36pm
|
Idea should go public in Fy 07 that will be a big trigger really. This company is never discussed on Tv and that is the first sign of an undiscovered value! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 28/Oct/2006 at 3:46pm
|
Basant jee
You mentioned correctly: This company is never discussed on Tv and that is the first sign of an undiscovered value!
If you launch "UNDISCOVERY" channel it could be a big hit...with Value Investors.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 02/Nov/2006 at 5:03pm
|
The company's results were good for the september quarter and my sense is that the IPO of Idea icould be round the corner. This should be the first value unlocking trigger and we are already seeing part of it. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: vip1
Date Posted: 02/Nov/2006 at 5:50pm
|
Basant, There was suppposed to be a rights issue of Rs 800 crores ofrom ABNuvo. Any idea when ,or is it scrapped?
|
Posted By: basant
Date Posted: 02/Nov/2006 at 5:57pm
|
As far as I know it is in the pipeline.Should hear about that soon. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: BubbleVision
Date Posted: 02/Nov/2006 at 6:35pm
|
BasantJi,
Do you know what happens to stock futures .... In case of Rights issue... i would really be greatful if you know this.
ABNuvo also has stock futures attached to itself ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: basant
Date Posted: 02/Nov/2006 at 6:42pm
|
Not sure but that is very interesting but they would adjust it ex-rights or start a new series from the rights date. Cannot assume that there would be no adjustment on this. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: BubbleVision
Date Posted: 02/Nov/2006 at 7:02pm
|
So the Futures holders would lose out on the "Cheap" rights on the stock....
Incase of LT.. (demerger of cement division).. They just expeired all outstanding positions as the Underlying (cash) was unlisted for a certain period.
But during rights the stock go ex on a certain date ... and are Not delisted.
Let us see what happens, would be an example for others which may follow...in the meanwhile for futures holders, a swith (from futures to cash) would be advised but in that case, they lose out on the leverage factor... ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: investor
Date Posted: 06/Nov/2006 at 9:03am
|
Hi Basant, I came across this news article today: ----------------------------------------------- UK firm buys 8% in Idea for Rs 960 cr UK-based independent asset manager GLG Partners has picked up an 8 per cent stake in the Aditya Birla group-controlled Idea Cellular. The deal size is estimated at $213 million (Rs 960 crore). This acquisition brings down the Aditya Birla group's holding in the cellular company from 73 per cent to 65 per cent. C Sivasankaran holds 1.7 per cent in the company. The Aditya Birla group, sources said, would not dilute its stake further before launching an initial public offering next year. Ideal Cellular's CEO Sanjeev Aga could not be reached for comments. Two weeks ago, the Birla group offloaded a 15 per cent stake to Providence Equity Partners of the US for Rs 1,800 crore. Last week, it sold a 10 per cent stake to ChrysCapital, TA Associates of the UK and Citigroup. The deals with the private equity players put the company's value at Rs 12,000 crore. Sources said the Aditya Birla group managed to sell stakes to these investors at around Rs 53 a share, which was nearly a 30 per cent premium over the rate (Rs 40.50) at which it had bought the Tata group's stake in Idea this April. The Tata group had sold its holding of 48.14 per cent in Idea Cellular for Rs 4,406 crore. They added that the promoters of Idea were clear that they would not sell more than 33 per cent to private investors. "Providence had emerged as the sole contender for this stake at one point in time. Later, other investors joined in," they added.----------------------------- Considering this, what valuation do you think Idea could get on listing, and what does that translate to in terms of value per share of AB Nuvo. That would give us an idea of how much hidden value there is in AB Nuvo. |
Posted By: basant
Date Posted: 06/Nov/2006 at 10:24am
|
Generally the value for Idea should be Rs 960/0.08* 100 = Rs 12,000 crore. But private deals are always priced lower then market value of listed companies (since they have no liquidity). WIth only two pure mobile telephoney plays Idea should trade at at least close to Rs 20,000 crores. Another way was by looking at number of subscribers. idea has close to 45% of subscribers of Bharti and Bharti trades at Rs 100,000 crores plus. So the math is clear.
Though it has run up since we initiated the discussion AB Nuvo is a great value story will all the ingredients of unlocking that value.AB Nuvo is a great value story with all the ingredients for value unlocking. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: BubbleVision
Date Posted: 06/Nov/2006 at 10:27am
Still dont know what to do with Futures though.... ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: basant
Date Posted: 06/Nov/2006 at 10:32am
|
The future(s) looks very good. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tigershark
Date Posted: 07/Nov/2006 at 2:14pm
|
so would you initite a buy on ab nuvo ,even if the price has run up the
intrinsic value seems to be far higher than the current mkt price so
should i make an initial investment say 50% of what i want to buy
------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 07/Nov/2006 at 2:47pm
|
Yes, the intrinsic value is far higher then the price as on today also but as you know I generally want to but at lower levels but if you have a diversified portfolio you could take in a position and then add as it declines(corrects). ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: BubbleVision
Date Posted: 07/Nov/2006 at 6:11pm
|
Much to my surprise, when i was trying to find out that what happens to a stock Futures, in case of a rights issue, i found that there are no Futures on the ABNuvo currently. The stock has been removed from the Futures segement. It was present in the F&O category earlier in the year. ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: b_kothari2001
Date Posted: 07/Nov/2006 at 8:30pm
|
Can some one please tell me how much AV Birla NUVO own in IDEA. Thanks for the information.Cheers,
Bharat
|
Posted By: basant
Date Posted: 07/Nov/2006 at 8:41pm
|
30% plus after the current dilution. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: b_kothari2001
Date Posted: 07/Nov/2006 at 11:03pm
|
Thanks Basantji, for so prompt reply. Cheers,
Bharat
|
Posted By: basant
Date Posted: 12/Nov/2006 at 6:45pm
|
I was at City Center the most happening mall at Kolkata. WOuld you believe it there was not a single soul in the Allan Solly show room while the Shopper Stop outlet next door was doing some brisk business. No customer on a sunday evening tells me something that the company's annual report does not . WHile AB Nuvo is not a retail play in the strict sense for people who are just launching outlets this should be of concern since the Indian consumer does want everything under roof and also at a cheaper price. So AB Nuvo and Raymonds should better get their formats in order before investors start counting square feet....
Can someone update us on all the other Allan Solly/Peter England stores in other cities.Does Raymond attract the same kind of crowds as a multiple item departmental format? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: India_Bull
Date Posted: 12/Nov/2006 at 9:13pm
|
Allan Solly and Raymond are considered to be premium brands. Every IT executive or midmgmt person goes for Allan Solly (my observation).Many guys I have interacted think Allan Solly , Killer (kewal fame) are firang brands...
You will see huge rush to buy these brands when they have their stk clearnce sales (which offers some discount)
Raymond is preferred mainly for wedding occasions. and you will get almost everything under one roof for wedding..Recently I checked out at Raymond, they also have got economical range now.
This is my personal observation...
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: vip1
Date Posted: 15/Nov/2006 at 11:00am
|
Basant,
KUM. Birla palnning to get into Retail has a chest of 9000 crores . Do you think ABNUVO would be the beneficiarry ?
|
Posted By: basant
Date Posted: 15/Nov/2006 at 11:25am
|
Already started rocking. It is up more then 10% today and trades at Rs 1140 right now. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: vivekkumar_in
Date Posted: 15/Nov/2006 at 11:39am
|
In the news it was reported that Birla will form a new company ABRL Aditya Birla Retail Ltd for retail ventures.. In such a case how will Nuvo be benefitted? ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: basant
Date Posted: 15/Nov/2006 at 11:45am
|
Earlier KM Birla had said in an interview that Novo could hold stake in that company since this has synergies with outlets already rolled out. Broadly it is early to establish that guess but that is how the market behaves. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: bullzi
Date Posted: 04/Dec/2006 at 10:58am
|
When I try to make any transaction in this stock it says the following: "The stock is in no delivery and will go ex-benefit from 01-Dec 2006" Anybody knows what's the reason? I am using icicidirect. |
Posted By: prosperity
Date Posted: 05/Dec/2006 at 12:32pm
|
Basantji,
If i have to buy one of the following two stocks at current prices - which one should i buy -
a) Educomp
b) AB Nuvo
Pls. select only one from the above. Thanks !
------------- |
Posted By: investor
Date Posted: 06/Dec/2006 at 8:07am
|
Basant, Idea has filed prospectus with SEBI. According to CNBC yesterday, the IPO is for 2500 cr and that would comprise 15% of the the post IPO equity. Which means mcap would come to around 16700 cr, which is a little less than the 22000 cr you had factored in your calculations. CNBC also said that AB Nuvo would hold 35.7% of Idea, which means around 5960 cr, which translates to around 714 Rs. per share of AB Nuvo. Is this right, or am i missing something? |
Posted By: Siddhartha
Date Posted: 19/Dec/2006 at 5:07am
|
Is the current holding in Idea is 35.7 % or around 30 %? And even they have long term plan in Telecom business, as their Report says. Why Birla has sold their stake to UK company before IPO?
If current holding is around 30 % then as per Investor's calculation, It is below 714 Rs.
|
Posted By: kulman
Date Posted: 29/Dec/2006 at 10:29pm
There is one xls sheet forwarded by one of my friends...the origin could be from JM-MS....As per their calculations...
------------- Life can only be understood backwards—but it must be lived forwards |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Posted By: basant
Date Posted: 29/Dec/2006 at 7:20am
|
My estimates are higher then that. It could be close to a 50% appreciation from current market price also but we need to see what part of that discount would be covered and what part would remain as holding company discount.
WHile it remains a good buy for a 3 year view the near term excitement (appreciation) seems to have been taken out. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 29/Dec/2006 at 8:38am
|
Just a small query: While somewhere else, the holding company's valuations were calculated @ 40~50% discount...then, why not here in AB Nuvo's case? Or am I missing something here?
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 29/Dec/2006 at 9:10am
|
Nuvo has a JV arrangement. Ina JV a company can take the minority profits of another company but in case of shareholding profits can be consolidated only if it is above 51%. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: ramki830
Date Posted: 01/Jan/2007 at 10:32pm
|
Excellent post by Kulman... If i can add my qualitative views on this subject, one should give higher valuation to IDEA, if birlas intend to sell it off at some point of time in future. It appears that Vodafone may pay 20 or even more billion dollars for Hutch India . IDEA has around half the subscriber base of Hutch ; but most attractive point about IDEA is it is a key player in some of the relatively underdeveloped (but fast growing) C Circles and states lik RJ, MP et al.
IMHO, It is quite possible that Birlas may like to grow it(IDEA) to 20-30 million subscribers and sell it at a high price and use the monies to grow(or acquire cos) in their core sectors (like Cement/Rayon/Garments/Non Ferrous Metals). And surely there will be lot of players interested 2-3 years from now. So it is quite reasonable to expect 2K or more valuation on AB Nuvo 1-3 years from now.
|
Posted By: vip1
Date Posted: 01/Jan/2007 at 10:22am
|
Basant , Hutch with double the No of customers is getting a valuation of close to 20 Billion USD. That way idea could go at 10 Billion USD . Discount it further and I think , there is real hidden value in ABNuvo. Kulman , above has given present Market Cap at 2.5 Billion USD whic , can safely go to 7.5 Billion USD seeing the present scenario.
|
Posted By: basant
Date Posted: 01/Jan/2007 at 10:37am
|
Right but we need to understand that Hutch's 20 billion has ownership premium. For the minority shareholders of Nuvo that ownership premium is non existent still Novo remains a great value. The caption of the topic (when we started discussing it at Rs 800) says it all!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: vip1
Date Posted: 02/Jan/2007 at 2:29pm
| But what about Ownership pemium , I would anyday prefer KM Birla to the 2 Ruias . |
Posted By: deveshkayal
Date Posted: 02/Jan/2007 at 11:03am
|
Aditya Birla Retail(unlisted company) has acquired Trinethra.Do you think that the garments business of AB Nuvo will be merged with AB Retail in the future.AB Retail has to go public sometime.Will AB Nuvo be holding some stake in it?.Mr Birla is truly on the path to achieving his target of getting in Fortune 500 by 2010. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 02/Jan/2007 at 11:20am
|
No idea on the merget but I doubt if these people will give something that can grow at exponential rate into the public domain so easily. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: muralimohan001
Date Posted: 06/Jan/2007 at 9:33am
|
Hi, I heard about rights issue of Aditya Birla Nova.
If any one of you know the record date and complete details of it, pls post.
Regards,
Murali
|
Posted By: bullzi
Date Posted: 06/Jan/2007 at 10:33am
|
AV Birla indeed has come out with a rights issue. The details are ISSUE OF 98,26,638 EQUITY SHARES OF RS.10 EACH AT A PREMIUM OF RS.783 PER EQUITY SHARE FOR AN AMOUNT AGGREGATING RS. 779.25 CRORES TO THE EQUITY SHAREHOLDERS ON RIGHTS BASIS IN THE RATIO OF TWO EQUITY SHARES FOR EVERY SEVENTEEN EQUITY SHARES HELD ON THE RECORD DATE i.e. DECEMBER 8, 2006 (“ISSUE”). THE ISSUE PRICE IS 79.3 TIMES OF THE FACE VALUE OF THE EQUITY SHARE. Record date is 8th december, and ratio is 2 for every 17 shares held offer price is 793. Congratulations to all the investors. This stock like tv18/indiabulls is beginning to unlock some of its true value. Infact, if you see the complete thread around 5-6th december i had posted that this stock was not in delivery mode. probably that was beacuase it was close to the record date. The complete details for the rights can be seen at: http://www.aditabirlanuvo.net/investors/investor_centre/letter_of_offer_pg03.htm I have a question. How do you apply for the rights from your online trading account? Thanks |
Posted By: muralimohan001
Date Posted: 06/Jan/2007 at 11:01am
|
In the NSE website there was a announcement on Dec 26.
Aditya Birla Nuvo Limited has informed the Exchange on 26th December, 2006 that "the Rights Issue of Aditya Birla Nuvo Limited has opened today".
But when is the record date? Will there be reduction in stock price after record date(like we had in pantaloon)?
Regards,
Murali
|
Posted By: vishal.sahay
Date Posted: 06/Jan/2007 at 11:13am
|
Murali'ji the ABNL stock has already been ex-right. the record date was 8th dec as mentioned by Mr. Nikhil, if u was hlding this stcok on the day before it got ex-right u would have received the application for the rights. ------------- Vishal |
Posted By: ramki830
Date Posted: 06/Jan/2007 at 11:45am
|
Well I would slightly disagree on this. Generally, Retail is now the craze for all business houses and investors, bcos it is kind of hot... Wal Mart gives the dreams for our corporates who hope to make it the next Wal Mart. But retail chains are not built in a day and it takes many years of steady growth and huge investment (esp in the right locations across geographies) that will give returns. So be it Reliance or our ABirla (thru Trinethra et al) or anyone, the growth (in retail) is going to come only after lot of investment...
So coming specifically to the ABirla group's retail forray, while it is done thru Birla TMT, expect them to put it in public domain, either thru AB Nuvo or thru a IPO.
|
Posted By: equity analyst
Date Posted: 08/Jan/2007 at 6:44pm
|
Has every one recieved the rights application forms,i have not recieved as yet.Where to write for it.Can anyone help. Regards
|
Posted By: vivekkumar_in
Date Posted: 08/Jan/2007 at 7:25pm
Check Investor Desk link in AB Nuvo's website.
There is a 'Letter to Investor about offer'.
January 2, 2007 Dear Shareholder, Sub: Rights issue of Aditya Birla Nuvo Limited We are pleased to inform you that the Rights issue of Aditya Birla Nuvo Limited has opened on December 26, 2006 and will close on January 25, 2007. The Composite application Form (CAF), Abridged Letter of Offer and other relevant documents have been mailed to the shareholders with registered address in India on December 18, 2006. We are sure you must have received the above documents by now. In case you have not received the documents, you may approach the Registrars for the issue of duplicate CAF at the following address: Mr. Salim Sheikh Intime Spectrum Registry Limited C-13, Pannalal Silk Mills Compound LBS Marg, Bhandup (West) Mumbai - 400 078 Tel. No: 91-022-25960320 (9 lines) Fax No. 91-022-25960329 email: [email protected] Only in case of non receipt of CAF, you can make an application on plain paper by providing the details as mentioned in Annexure A after referring Letter of Offer / Abridged Letter of Offer. However, before making any application you must satisfy yourself about the issue after going through the Letter of Offer, a copy of which is available on Lead Managers’ website, www.enam.com, www.dspml.com, during the issue period and is also available at www.sebi.gov.in. On representation of various shareholders we have increased the number of collection centers, which is provided in Annexure B. We have issued an advertisement to the shareholders on January 1, 2007 in the relevant newspapers in India. In case of any difficulty, you may approach us. Thanking You, Yours faithfully, For Aditya Birla Nuvo LimitedSd/- Devendra Bhandari Company Secretary Encl: as above Note: The rights entitlements and Equity Shares which are the subject of the above referred Letter of Offer have not been, and will not be, registered under the US Securities Act of 1933, as amended. The offering is being made in India only and is subject to certain restrictions which are set out in full in the above referred Letter of Offer. ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: equity analyst
Date Posted: 10/Jan/2007 at 3:34pm
|
Thanks Vivek got it. ------------- "Markets are the places where two types of people meet up in the morning: those with experience and those with money. Towards the end of the day, they exchange their assets and go home." |
Posted By: vip1
Date Posted: 15/Jan/2007 at 11:19am
Today there is an article in Eco-Times which puts Total market Cap of Indian Telecom at 100 Billion USD . It gives idea a Market Cap
of 8-9 BillionUSD near to what we were talking about .
|
Posted By: basant
Date Posted: 15/Jan/2007 at 11:26am
To some extent it should just that market always values independent entities higher. STill the margin is very very deep. On the first page of this topic I had highlighted the valuation based on what Bharti was valued at at that time.
http://www.theequitydesk.com/forum/forum_posts.asp?TID=305 - http://www.theequitydesk.com/forum/forum_posts.asp?TID=305
Remember Hutch value has an inbuilt ownership and transfer premium so it would be better to look at Bharti's valuation.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: johnnybravo
Date Posted: 23/Jan/2007 at 3:46pm
|
Guys, I need some help in filling out the rights form of ABN. 1) What's the depository for ICICI Demat? NSDL/CSDL? I hold a webtrade + demat account with ICICI. 2) Exact Name of "Depository Participant Name"? - i know its ICICI, just not sure whether ICICI bank or ICICI Demat or some *ICICI* 3) DP - ID No.? 4) The CAF also be asks Beneficiary account no. I guess its the Demat account number. Right? There is a long string displayed by my icici direct account - **** Just wanted to confirm which of these numbers relate to what? Any guy who uses icicidirect could be able to help me on this....I know these question might sound pretty trivial but no book or buffet can tell these! Cheers Tushar ------------- Saab Moh Maya hai! |
Posted By: investor
Date Posted: 23/Jan/2007 at 4:13pm
|
[QUOTE=tushar]Guys, 1) What's the depository for ICICI Demat? NSDL/CSDL? I hold a webtrade + demat account with ICICI. NSDL 2) Exact Name of "Depository Participant Name"? - i know its ICICI, just not sure whether ICICI bank or ICICI Demat or some *ICICI* Enter "ICICI Bank" as the DP name. 3) DP - ID No.? Its there on all your transactions - DP ID and your Client ID. |
Posted By: johnnybravo
Date Posted: 23/Jan/2007 at 4:20pm
Thank you 'investor' !  |
Posted By: investor
Date Posted: 23/Jan/2007 at 4:29pm
|
Tushar, Since you have now got the info you were looking for, i will edit my post to remove all your account number details, and i suggest you also edit your earlier post to do the same, since its not advisable to have all your account details on a public forum. |
Posted By: basant
Date Posted: 23/Jan/2007 at 4:43pm
|
I have edited the same but please give imaginary numbers in future since they can be subject to misuse. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: bullzi
Date Posted: 23/Jan/2007 at 10:44am
|
Basantjee, Even though you might have edited the nos, but some of us (including myself) have set up email notifications for some of the discussion threads. The notification mail has the contents of the message as it was posted originally. Email notifciation is a useful feature but it contradicts with the ability to be able to edit posted messages. Just wanted to re-iterate what basantjee said. Please do not share your account nos. ------------- It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong - George Soros |
Posted By: basant
Date Posted: 23/Jan/2007 at 10:55am
|
Yes, that is an interesting and important point. We should always give examples with imaginary numbers. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: johnnybravo
Date Posted: 24/Jan/2007 at 12:42pm
|
Thank you all for enlightening me of possible misuse if original numbers are quoted. It should indeed be the right practice to quote non-factual numbers. As a matter of fact, those numbers were indeed imaginary! Cheers and thanks  |
Posted By: deveshkayal
Date Posted: 25/Jan/2007 at 11:24am
|
Idea Cellular fixes IPO price band at Rs 65-75
Aditya Birla Group firm Idea Cellular has fixed the price band for its IPO,scheduled to open for subscription on February 12 for raising upto Rs 2125 crore.The company has concluded a pre-IPO placement of Rs 375 crore to some of its promoters,directors and high net-worth individuals, an Idea release said here.This includes a Rs 225 crore placement with Aditya Birla Nuvo and Rs 137 crore with Birla TMT holdings.The placements were done at Rs 75. Net issue to the public will be Rs 2075 crore.
Basantji, can you find out how much stake will ABN have after IPO. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 26/Jan/2007 at 3:52pm
|
After IDea gets listed other businesses of Novo would be available for FREE. Maybe Nuvo could see serious upmove over the next 3-4 months.Does anyone know the projected market cap of Idea after IPO. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: India_Bull
Date Posted: 26/Jan/2007 at 3:59pm
|
I fail to understand why Kumar Birla doesnt demerge all these companies which are under the umbrella of Adity Birla Nuvo. There is no synergy between different business it carries out and if he separates them it would create huge wealth for the stakeholders..
E.g I am invested in Aditya Birla Nuvo just because of Idea and Allan Soly and not interested in its other business.
Atleast separating Idea would be a good trigger for the stock .as I guess he controls 98 % of IDEA through his other group companies. ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: ramki830
Date Posted: 27/Jan/2007 at 5:48pm
|
Sandeep, You have a point. But my opinion is that we should place our complete faith in KM Birla and be patient. This man has worked wonders in his other group company - Grasim in last 8 years. I understand he has an excellent group of advisors, who work on things slowly but steadily and are fully committed to improving shareholder value.
Right now maybe his focus is on getting some global business for Hindalco.
I believe that eventually the three companies (Hindalco, AB Nuvo and Grasim) would disentangle their cross holding in several businesses and spin out a Cement Co, Metals co , a Chemicals and Materials co and a New Age businesses co. The last one would have things like Madura Garments and Idea and also retail stuff while the third one would be having businesses like chemicals, rayon, carbon black, fertlizers etc.
In any case, this will happen eventually. And since market is not factoring this, AV Birla Group cos (all 3 of them ) are relatively undervalued compared to peers. And AV Birla group is one of the cleanest groups with spotless promoters in our Indian markets.
That is my 2 paisa view.
|
Posted By: nikhil090
Date Posted: 05/Feb/2007 at 10:16am
|
Idea IPO is coming at 65-75/sh. It is valuing the business at 20000 cr.. Now idea has 13 million subscriber as against 32 million for bharti/reliance.
Doesn't it appear very cheap? 1/3rd of bharti valuation gives 50000cr and take a discount to bharti's margins etc of 25-30%. The valuation should still be closer to 40000 cr and I think that i am conservative here.. That means IPO gives good opportunity to enter the stock.. any views pls?? |
Posted By: basant
Date Posted: 05/Feb/2007 at 10:25am
|
How about Nuvo itself at US $ 2.5 billion you are getting 30% (approximately) of Idea with some very exciting businesses in Insuranceand other http://www.theequitydesk.com/forum/forum_posts.asp?TID=259 - emerging sector . ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: nikhil090
Date Posted: 05/Feb/2007 at 10:52am
|
Basantjee,
What would you prefer? Idea at IPO price or ABN at current prices? |
Posted By: basant
Date Posted: 05/Feb/2007 at 11:04am
|
You would not get Idea at IPO price - oversubscription.But if you can focused players are always better else AB Nuvo(has deep value which would prevent downsides). ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Bobby
Date Posted: 07/Feb/2007 at 1:26pm
|
nikhil,
if u wud hv bought AB Nuvo y'day, u wud hv been richer by 10% |
Posted By: nikhil090
Date Posted: 07/Feb/2007 at 1:43pm
| I did bought some quantities..small again but it is ok..I can never predict market moves |
Posted By: BubbleVision
Date Posted: 07/Feb/2007 at 2:50pm
|
I can never predict market moves
----------
Correct Nikhil... we can never predict markets... we can only react to them..Its like a chess game ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: nikhil090
Date Posted: 07/Feb/2007 at 3:02pm
|
It also brings forward one more point - The valuation gap is removed faster in big companies than in smaller companies.. Network 18 move also signifies that..
Also ABN is entirely because of conviction of Basantjee. I did nothing by myself in this scrip except buying a small quantity.. |
Posted By: PrashantS
Date Posted: 07/Feb/2007 at 3:33pm
yes we all need to give a good present to basantji....
|
Posted By: basant
Date Posted: 07/Feb/2007 at 3:41pm
|
It also brings forward one more point - The valuation gap is removed faster in big companies than in smaller companies
______________________________________________________
New and very relevant observation. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 07/Feb/2007 at 9:50pm
Basant Sir, can u please elaborate little more.... ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: basant
Date Posted: 07/Feb/2007 at 10:44pm
|
Not sure which part you want me to elaborate but I tried suggest that before Idea would list Nuvo would also run up so people could buy Nuvo since it was avilalable at almost free compared to its holding in Idea. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: us121
Date Posted: 07/Feb/2007 at 10:47pm
|
thanks. got it. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: nikhil090
Date Posted: 07/Feb/2007 at 8:02am
| If for argument sake, we take the value of Idea to be 40-45000cr(which e will come to know of in a month), what would be a fair price for ABN? 2000? |
Posted By: basant
Date Posted: 07/Feb/2007 at 8:13am
|
From what I know Nuvo holds about 30% in Idea so a investment value of Rs 40,000*30% = Rs 12,000 crores. That is the value of holding. That 30% number needs to be checked but broadly it is near that. Now how much would you discount that since this is less then 51% and company cannot consolidate accounts?Even then this investment would be equal to the value of the entire company. Nuvo market cap is less then this plus it has a lot of other interesting businesses. I maintain it has some deep value which the market has not recognized fully. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: praveenmbd
Date Posted: 07/Feb/2007 at 10:09am
| Earlier you mentioned that it is JV arrangrment and in JV minority profit can be taken. Please correct me. |
Posted By: India_Bull
Date Posted: 08/Feb/2007 at 4:54am
|
Sharekhan has woken up suddenly after the price rose by 15 % in ABN and has given a target of 1600 ... (That is the reason when I was a beginner I didnt make money or rather lost opportunities as I was following SK based on the research and recomm and bought at high prices !!
But everyone has to pay the tution fee to learn and nothing is free in this world !!
P.S : Some of SK - Emerging stars have fainted in the bull run and SK has declared outright sale ------------- India_Bull forever Bull ! www.kapilcomedynights.com |