Multi Baggers
DIC India
BSE ID : 500089 NSE ID : DICIND
RECOMMENDED PRICE 235.70
PEAK FROM RECO 746.75 216.82%
CURRENT PRICE 468.60 Resource id #17
DIC India is a part of the world's largest manufacturer of printing inks and allied material, DIC Corporation of Japan. We expect with delisting process the stock will be hovering around 300-325 levels. We recommend buy at CMP Rs 235.70 with target price in range of Rs 325-340-440.
DIC India
DIC India is a part of the World's largest manufacturer of printing inks and allied material, DIC Corporation of Japan. DIC Japan has a 71.75 percent share holding in DIC India Limited through DIC Asia Pacific Pte Ltd, Singapore.
DIC India is one of the largest companies in the Indian printing, publishing and packaging industry segment, catering to newspapers, magazines, packaging and printing establishments in the country.
DIC India has spread its business operations across the country with factories and logistics centers at strategic locations. DIC India's R&D Center at Kolkata and Noida, a member of DIC Group's international R&D network, focuses on development of new products, improvement of existing ones, new technologies, processes and applications for indigenous and pan Asia-Pacific markets.
The Delisting Move:
The company has made a voluntary delisting offer. Our probability model and predictor model suggests the company free float success distribution is 57 percent and chance of delisting is low at 34-38 percent. Japanese companies have paid huge premium to buy the stock so will not be surprised if the floor is revised to 340 360 and delisting ends above 400 or even 500. As small investors one can buy now and wait before delisting process starts. We expect with delisting process the stock will be hovering around 300-325 levels where one can exit a large part (70 percent) and rest tender at a higher price of Rs 400. Worst case scenario one will be making profit from the strategy.
We recommend 'BUY' at CMP Rs 235.70 with target price in range of Rs 325-340-440.
| Particulars | Ownership (%) | No. of shareholders |
| Promoters holding |
71.75% |
1 |
| More than 1% |
4.99% |
2 |
| Others |
23.26% |
8972 |
| For delisting | ||
| Percentage of tender required |
18.25% | |
| No. of shares |
1675164 | |
| Probability of tender |
0.570126938 | |
| Forecast adjustment |
0.34-0.38 |
Disclaimer: Aashish Tater is an equity analyst and investment consultant based in Kolkata, INDIA. At the time of writing this article, he, his firm and dependent family members have no position in the stocks mentioned above. The author invites readers to send him email and welcomes comments, feedback & queries at query@fortunewizard.com. This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information/ article.
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