Navbharat Ventures, Dr Reddys, Godrej properties and Bombay Burmah Investment Pick !!

Navbharatblog

 

NB Ventures --- the stock can see a quick move to 240 + levels.

Disclosure: Recommended to clients and will also be mentioning on CNBC.

 

drreddy

 

Dr Reddys --- Keep a close watch on 1700 mark.

 

godrejproperties

 

Godrej properties --- I continue to favor this management and the above stock is the best in real estate space in terms corporate governance. Watchout for a move above 680 for quick 10-15% jump.

 

 

A quick Update on Bombay Burmah Trading Corporation --- the stock has been recommended yesterday.

 

Lets have a quick look

 

Through Leila Lands Bombay Burmah owns 50% in Britannia  --- Value 3150 cr

14% stake in Bombay Dyeing --- value 280 cr.

They showed a profit of around 130 crores from sale of two of its divisions. ( the slump sale was for almost 100 + 180 cr )

The company is more then 100 years old and the Real Estate it owns can be enormous 🙂

 

So overall holding value should be a minimum of 3500 crores ( this is on quoted investments)

Current Market Cap – 650 cr.

The stock is available at 80% discount to its holding value.

 

We are giving no value to the tea and coffee estates  ( 2000 + hectares ) + real estate and many more subsidiaries. They also might be holding some stake in other group companies and majority of the assets would be at 1 rs 🙂 in the balance sheet as its a 100 year old company.

So if the stock does go through some restructuring of assets and slump sales we can see a lot of Value Unlocking. My expectations is with the slump sales of sunmica and other divisions the management is clearly hinting towards Value Unlocking 🙂

 

From current levels the downside could be limited to 400-420 levels fundamentally but upside can be anything :). The major reason to buy right now is technicals – Huge Volumes and Price Action 🙂 .

Last year also in Mid 2010 we had picked up Bombay Burmah  at 400-450 and booked profits at 550-650 in short term on technical timing. The stock has been on radar for a long time. A similar stock is Bengal & Assam which has super but we may wait for a move above 250. Check detailed post on it --- Bengal & Assam Company

 

Disclosure: The stock has been recommended strongly to clients 🙂

 

TECHNICAL ANALYSIS TRAINING SESSIONS SCHEDULE

MUMBAI 25-26th FEB, 2012.

AHMEDABAD MARCH,2012.

To know more contact: Kazim on 09821237002 or Asif on 09833666151

 

 

Happy Investing,

 

Nooresh Merani

7 Comments

  1. smit
    February 22, 2012

    Hi Nooresh Sir,

    Do You Think Nifty 5700+ will hold?
    People Have Started Giving Targets of 5900-6300+ !!!
    Even Telling New High Will be made Before June 2012…

    What Does The Charts SAYS??? i personally feel after hitting 5700+ it will come back to 5400 around & again rise to 5900+
    Eagerly Waiting For Ur Views 🙂

    Reply
  2. Dhiraj Mark
    March 1, 2012

    Hello sir…do you think that Nava Bharat Ventures can move up, it has come down till 194/- level, do you think it is a buy now….

    warm regards
    Dhiraj Mark

    Reply
    1. nooresh
      March 2, 2012

      Hi Dhiraj,

      Its a good bet ! Buy and be patient

      Reply
  3. Dhiraj Mark
    March 9, 2012

    Nava bharat ventures on song today…. trading with huge volume today…
    regards
    Dhiraj Mark

    Reply
    1. nooresh
      March 9, 2012

      Yes seems to be some block deal which took place.

      Reply
  4. Dhiraj Mark
    March 11, 2012

    Well well!!!! Nava Bharat ventures – Promotors have purchased around 15 lakh shares from open market, something is cooking here… huge huge volumes on Friday as well… hope it start running and never stop 🙂 ….

    warm regards
    Dhiraj Mark

    Reply
    1. nooresh
      March 12, 2012

      Keep patience and a stoploss.

      Let the markets do the move. Low liquid midcaps only take a few sessions to make their move.

      Reply

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