Thursday, August 19, 2010

RAGHAV INDUSTRIES LTD.

Raghav Industries is not a BUY based on its financials or conventional valuation parameters.But it is a scrip to watch due to some other reasons .This company belongs to the Pawan Kumar Ruia group which owns other listed companies like Dunlop,Falcon Tyres..etc. There is nothing more to say about the present business of this company.This is almost like a shell company with negligible operations in trading of textile items.But ,it came to limelight recently when it bids for ailing  South Korean sports utility vehicle maker Ssangyong Motor Company.When we look into the history of P K Ruia group ,it is known that almost all companies currently under their fold like Jessop & Company,Falcon Tyres,Dunlop Tyres are came through inorganic route( acquisitions) .They have succeeded in acquiring ailing companies and make it turnaround in short period .Even if it failed in the bidding war to Mahindra and Mahindra (M& M), Mr Ruia clearly states that they have other global targets in automobile sector. It is not clear whether it will be through Raghav Industries ,but the chances are very high considering its previous effort and high promoter stake.Out of the 19 Crore equity, Promoter group holds about 45% and large share holders (share holders holding shares more than 1% ) holding about 49% .There is a big chance that these large share holders (three entities) are close associates of promoter itself , thus it makes a 95% interest in the company.If they struck a deal ,Raghav may be re-rated and may turn as a multi bagger. Considering the history of the group ,chances are very high for such a deal in future. Since it is based on many IF's ,Raghav is only for risk takers having patience and with a mentality to forget the investment at least for few more years.Currently it is quoting at Rs.59/-

5 comments :

  1. Hi Value Pick,
    Some of Ur picks like Aries agro, Suckjit starch etc r real gems.
    Aries gave a presentation to analysts - Do we suspect why such a publicity is needed now?
    Can u please give ur views on
    SSPDL- Company roped in a foreign partner for its real estate business.
    and
    TRANSCORP INTERNATIONAL- This is separating two of its verticles into subsidiaries roping in partners will be next logical step going by the trend in similar cases. The promoter stake in the company is re assuring. Any positive news will have a telling effect on the stock because of its low floating stock.
    Ur view please

    ReplyDelete
  2. Dear Sir,

    Here is the article link on Pavan Ruia's acquisition plan of a german firm. It says it plan to use Falcon Tyres for the acquisition. Want to know your views on Falcon Tyres.

    http://economictimes.indiatimes.com/Auto-Components//articleshow/6509735.cms

    Regards
    SMishra

    ReplyDelete
  3. Respected sir,
    plz advice me on cerebra intigrated,i have 4900 share,i want to know abt its feature and e-waste plant.plz try yr level best for me.
    thx
    urmil desai

    ReplyDelete
  4. dear sir... i have 5000 shares of dunlop india ltd want to lnw about this comany plz adivse me sir

    ReplyDelete
  5. Dear sir
    I have 200 shares of Raghav Industries and it is not traded in exchanges.what is the matter and how can I sell them?There is no news at all
    Thanks

    prashanth

    ReplyDelete

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