As per me following things can happen going forward this includes some prospects as well as observation on recent scuttlebut:
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Assets in north india (Near chandigarh were always under valued to avoid taxes)
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Raipur manufacturing got merged last year only, that asset was worth 200-300 cr producing revenue on conversion basis for parent before merger.
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All locations, they have huge land parcels, buildings are getting added now. Land value actual and Book always had big difference for them because they were procured in 2000’s and 90’s mostly and they follow cost model for subsequent measurement as per IndAS 16 “Property, Plant and Equipment.”
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Likely to add fresh 500cr assets over next 2 years like one announcement earlier on 2nd March and 9th April but with lower asset turn in future because now the assets based will increase as new capex is done on today’s price bit still they will have decent asset turnover relative to industry peers
So the company used to do other work of pipe making from its sister concerns prior to the merger of all into the listed entity and now they plan to go completely backward like hariom pipes, sambhav sponge (unlisted player in raipur)
So the overall prospects looks good to me going forward.
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