Smartlink Network , Riddhi Siddhi Gluco and Hindoostan Spinning Mills – Interesting Observations

Smartlink Network Systems :

We had earlier discussed this as interesting idea closer to 70 levels. ( we have initiated a buy reco at 68-73 levels to clients and partial booking at 86-90 )

 

The current market cap of the company is around 250 crores.

Lately the company sold of one section of their business which was almost 90% of the revenues for a sum of 503 crores.

But with the recent actions by many indian companies like gwalior chemicals, indo asian fuse gear, piramal healthcare an many others which have not rewarded the shareholders.

 

Market expectations are the company may announce 20+ rs dividend shortly. On a simple basis it should not quote below 60-70 levels in current situation.

 

Let us see whether the management rewards the shareholders or not though we expect good news possibility.

 

Riddhi Siddhi Gluco

 

At the current price of 365 odd the market cap for the stock is around 400-410 crores.

 

The plant sale to the french co roquette values it at 1250 crores and over the next 8-10 months the deal can be completed and cash on books could be around 800 rs per share with no business left and a possible power foray.

 

The only concern has been the integrity of promoters as the plants would be transferred to a subsidiary and then to the french co. So the entire money still remains at the disposal of the promoter as well as there is no open offer route for minority shareholders.

 

The current movement in the stock suggests some internal buying and inkling of an announcement as the stock price is above 360 where the initial announcement reaction was.

 

Hindoostan Spinning Mills

 

The recent announcement of amalgamation of the company with Sirdar Carbonic Gas company is as given in the announcements as below

https://www.bseindia.com/stockinfo/anndet.aspx?newsid=784788f0-ebe5-44f4-87c3-2dad16680ff1

 

he Exchange Ratio is 8 (Eight) Equity Shares of the Transferee company (Sirdar) of Rs. 10 (Rupees Ten) each fully paid up for every 100 (One Hundred) Equity Shares of Rs. 10 (Rupees Ten) each fully paid up held in the Share Capital of the Transferor Company (Hindoostan).

 

Current Market Price of Hindoostan Spinning Mills – 46

Current Market Price of Sirdar Carbonic Gas – 724 ( No shares traded ) But yesterday was on ckt with 2000 buyer.

 

So in that case there is a possibility of a arbitrage as Hindoostan Spinning Mills should be 55 + but we dont know how much time it will take for the amalgamation and whether at that time Sirdar can trade at 720+ levels as its a closely held entity.

 

But if any of the readers can look more into the stock it could be an interesting observation not necessarily a trade.

 

All the above stocks are just informatory and not as a buy or sell call. Please do your own research.

 

Regards,

 

Nooresh