7th april 2011
PLz share ur comments n suggestions
Maharaja Shree Umaid Mills (MSUM), a LN Bangur group enterprise, was incorporated on
August 12, 1939.
It is a spinning-cum-composite textile company with over sixty five years standing in the
chosen business of yarns and fabrics
Deal with IP Paper
No of shares in AP Paper
Price per share
Total Realisation/ Cash which will come
Total Cash in company
Total Cash Net of Debt
Total no of shares of the company
Cash Value per share
CMP at a discount to Net Cash
|Rough cut Business Valuation||Total Discount to Fair Value||Per share incremental value|
|Price/Book of 0.5||Rs per share||53.8||38%||163|
|Earning Power at a multiple of 5 (5y avg EPS of 11.6)||Rs per share||58.4||39%||168|
You are basically getting the business for free along with surplus cash of Rs 109 per share
However, The utilisation of cash like Piramal case will be a key trigger...
Before ap paper announcement it was a strategic stake for Bangur's n mkt doesn't value holding co's whose inv's are strategic in nature as there is no clarity when they will be realised.
for excel attachments: Link