Here are some updates from the AGM which I attended this year
Bangalore property (rental) market is slow and the rental expected is around Rs 40 to 45 per sft vs Rs 50 expected earlier.
The management was categorical that they will go slow on property development incl Hyderabad till an uptick is seen in the property market. They do not want to be stuck with unsold/unleased property
I think the land in Hyderabad which is freehold is around 280 acres and the value should be around Rs 11 – 15 crores per acre at least. The rest around 600 acres belongs to a Sikh trust (99 years lease with the company) and case going on for many years in Supreme Court. I met one of the trustees in the AGM and he does not expect a resolution soon
The quality of earning of explosive/mine business is also not great ….op profit was negative last year….However they said that it has turned positive in the current year.
I agree this company can be a multi bagger if the company shows some dynamism and gets its act together
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