Saturday, August 27, 2011

GALAXY ENTERTAINMENT CORPORATION - WILL BIYANI WAKE UP ?





Once , Kishore Biyani was an icon of Indian business men.He is also considered as the father of Indian organised retail sector.But off late his image is fading at least among the investors of his listed companies like Future Capital Holdings.Diversification beyond limits with over enthusiasm will always end in lack of concentration and which is happening in Future group now.We can't justify collecting money from pubic again and again and at the same time ignoring the best available opportunities to create wealth.I don't know , till now whether Kishore Biyani is even aware that there is a company named 'Galaxy Entertainment Corporation (BSE CODE - 506186) ' is existing  with his 'Future Group'.Anyway it is taken over by Future group in 2005 from the Chatterjee group (the major share holder of Haldia Petrochemicals Limited) but strangely ignored till now.Phoenix group also holding  stake in this company. It is very difficult to guss why future group neglect this company even at a time Leisure and entertainment stocks are commanding huge valuations.As ,  many of you are aware Galaxy Entertainment running bistros,theme restaurants and eateries under two brands named "The Sports Bar' and 'The Sports bar Express'. Company's facilities are located in Noida,Mumbai,Bangalore,Indore...etc.Company also had a gaming business under the fold 'The bowling Company' .For the FY 2010-2011 , company posted a turnover of Rs.27 Cr and a loss of Rs.7 Cr.In the first quarter of This FY , Galaxy posted  a sales of Rs.6 Cr and a loss of Rs.3 Cr.

Recent Developments


Even in a huge loss , this company inviting my attention because of some recent developments.I believe ,after a long time the promoters now identified that there is a company laying in Future ( Pantaloon) group in the name of Galaxy Entertainment Corporation.Recently company decided to stop the operations of some loss making centers and also changed the bowling business into a minimum guarantee plus revenue sharing model. Recently  Sunil Biyani, cousin of Kishore Biyani is appointed as an additional director of  Galaxy entertainment.And the most important point is -  Company is now seeking share holders permission to borrow an amount upto Rs.80 Cr and the reason for this fund raising is mentioned as the implementation of  new projects and for working capital requirements.Further more ,the old promoters - Chatterjee group - bought additional 7 % stake through bulk deal on 17/08/2011 @ Rs.14.25 ( currently Chatterjee group is in Public Category). Almost 60 % stake is already held by the two promoter groups - Future and phoenix Mill.
Now,listed food chain companies are very rare in India and if there is one like Jubilant foodworks ( even if with an international brand 'Dominos) is running at hefty valuation. ( Agree - both business is  not strictly comparable) .I don't think Kisore Biyani is a fool to waste opportunities and believe he is still with caliber to do something if he decides, especially at a time many foreign food brands are interested to enter into India with local partners.Anyway Galaxy entertainment Corporation is now trading near its all time low @ Rs.13/- ( All time high is Rs.420/- in 2005) is worth for a bet for maximum risk takers at current price or below and it is the only listed company from Future Group which may turn as a multi-multi bagger from current level .The one and only question is whether the promoter is interested or not,and the first sign of the answer for  this question may get in near future when they announce the utilisation of  funds they are going to raise shortly.

13 comments :

  1. sirji, can i have jagatjit in my folio at the CMP?

    ReplyDelete
  2. sir, what is your view on educomp?
    at cmp is it a good investment for longterm???

    ReplyDelete
  3. What about resignation of Kishor Biyani as a director in August, what do you make out of that?

    ReplyDelete
  4. Dear Sandeep

    He was only for a name sake without any active involvement

    ReplyDelete
  5. sir,
    should i hold ks oils or exit? bought at 24 rs.

    thanks,

    aditya,

    ReplyDelete
  6. Dear Valuepick sir,

    First of all.. If you don't mind, I want to know your name. :)
    please let us know if you suggest to buy this company shares in small lots or in large amounts.

    ReplyDelete
  7. Dear Sir,

    Can you please share your view on Uniply Industries.

    Awaiting for your response.

    ReplyDelete
  8. DEAR VALUE,

    IS THERE ANY VALUE IN INDIABULL WHOLSALE LTD.? I DONT UNDERSTAND RELATION BETWEEN IB REAL EASTATE AND THIS COMPNAY? I GET SOME SHARES OF IT ON IB REAL ESATATE SHRS.

    PATIDAR

    ReplyDelete
  9. HOW IS suryaamba for long term view?

    ReplyDelete
  10. sir what is ur view on the LAKSHMI ELECRICALS?

    ReplyDelete
  11. agree with RajeshB, your followers want to know more about you , you are providing nice & wonderful stock market knowledge , still we dont know you.all your follower will be thankful & much delighted if u tell us more about you

    ReplyDelete

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