Multi Baggers

Aashish Tater

5.30 AM Jan 1st 1970

Oswal Greentech

BSE ID : 539290 NSE ID :

RECOMMENDED PRICE 30.10

PEAK FROM RECO 44.20 46.84%

CURRENT PRICE 35.99 Resource id #18

Oswal Greentech owns 350 odd crore of cash and liquid MF's and Investment and Debt free company. We recommend this stock to BUY at Rs 30.10 with a target price of Rs 55.

Oswal Greentech

NSE ID: BINDALAGRO

Key Triggers:

Oswal Greentech is doing residential projects one of which to be launched soon . Thus it will be relooked as a Real Estate company owning substantial cash and assets.

Balance Sheet has more liquid assets than current market cap and interestingly the company is doing three major projects in Ludhiana.

A land asset play and also decent cash in balance sheet makes the stock as one of the proxy play for real estate companies.

Real Estate Play:

Company to launch Centra Green

"Centra Green" Real estate project to be launched for booking soon is on verge of completion expected delivery in July 2017:

Centra Green is a 1.4 million square feet project and expected to do appx 650 cr of Revenue.

Apart from Centra Green the company is developing two more projects in Ludhiana worth 5 lac square feet each.

Additionally the company owns some 13 acre land in Rishra .

They have also been said to develop a commerical project in gurgaon with DLF. (This has been quoted by http://m.dailyhunt.in/news/india/english/business-standard-epaper-bizzstand/oswal-vs-oswal-newsid-52102533).

Media Play (Even applying holding discount should be appx 100 cr worth of Media Investment on conservative side).

The company owns 50.36% stake in News NAtion ( News nation was set up in 2012 and a channel with 5 year legacy is valued somewhere around 80 odd crores).

It also owns 9 million shares in NDTV which is worth 80 cr at CMP.

Cash Rich:

Owns 350 odd crore of Cash and Liquid MF's and Investment and Debt free company.

Short term Advances , Loans and Intercorporate Deposits : Worth 1335 crore

If one adds all the assets the net current assets are two times the current market cap

The BIG BET:

Market cap 750 cr , Company will do appx 40 cr Net profit from investments like last year on advances short term assets. We expect profit of appx 30-40 cr to be booked from centra green in this year and similar profit to be booked next year.

Market has still been valuing Bindal agro as a company that owns cash and investment. But the company diversified into real estate play. Returns of which likely to accrue this and next financial year.

Market has been rewarding all cash rich/asset rich companies our old recommendations Bengal Assam Smartlink so going by same logic as market will revalue company post the launch of real estate project "Centra Greens".

There is change of guard after demise of Late Abhey Oswal so likely shareholders also tracking down the fight for control another angle that can rerate the stock to its intrinsic value.

We recommend this stock to BUY at Rs 30.10 with a target price of Rs 55.

Disclosure (SEBI Registration Number for Aashish Tater : INA300001206)

Stock Ownership - No

Stock traded in Last 30 days ( No trading or investment activities done) - No

Stock Recommended to Clients - Yes

Remuneration/Benefits received from company in 12 months - No

Merchant Banking Market Making activities / projects - No

Any arrangement with co. to affect the report write up - No

Disclaimer: Aashish Tater is an investment adviser 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.