Sunday, April 17, 2011

Maharaja Shree Umaid Milla- get the business free with surplus cash of 109 Rs


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
MKt cap
Rs cr
359
CMP
Rs
416.6
Deal with IP Paper
No of shares in AP Paper
cr
0.86
Price per share
Rs
674.94
Total Realisation/ Cash which will come
Rs cr
581.07
Total Cash in company
Rs cr
581.1
Debt
Rs cr
128.0
Total Cash Net of Debt
453.1
Total no of shares of the company
Cr
0.86
Cash Value per share
526
CMP at a discount to Net Cash
32%
109


Rough cut Business ValuationTotal Discount to Fair ValuePer share incremental value
Price/Book of 0.5Rs per share53.838%163
Earning Power at a multiple of 5 (5y avg EPS of 11.6)Rs per share58.439%168
Nutshell,
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