Nirlon Ltd.

This is yet another real estate take...

Nirlon Ltd.
CMP: Rs. 50 / per share
Expected : Rs 150+ /per share

Mind you..it could just turn out to be a risky one.

..mainly in textiles, fibers & Nylon. Hd been showing loss for long.
But the reason why this is tempting is...it now plans to move to develop Real Estate on the vast land holdings in Goregaon Mumbai.

<---snip---
The K. Raheja Developers group is said to be developing the Real Estate, and they have picked up 4% stake in the company though the stock market route during the May crash at throwaway prices. Also Videocon International has already bought 3.35 per cent stake in the company.

According to the corporate announcements of the company, the company has confirmed that it is no longer a sick company as per the provision of the Sick Company as per the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Also it has confirmed media reports that it is developing real Estate on the company's land banks.

The value of these developments comes around Rs 1000 crores which suggests a target of around Rs 200/Share in the months to come.
---snip--->

the stock is showing movements and is rising now... from 20s to.. 30s and into the 50s now.

Also read.

Real Estate

The latest Buzz in the markets are the Real Estate stocks...hence my first pick would be a Real Estate stock, which, *I think*... can give good returns....without making purists (read Fundamental Analysts) uncomfortable...

Stocks like Mahindra Gesco and Unitech have shown dizzy valuations....which would make any Fundamental analyst go dizzy...

My pick for the sector is: Ansal Housing and Construction Limited
*** Current Market Price: 340
*** EPS for the First Half'07 : 11
*** Last Quarter on Quarter growth in EPS: 22%.
*** Current P/E Ratio: 17.

Notes:
>> The profits have doubled when compared to the same quarter of the last year.
>> One Year Price target for it going forward based purely on earning : 22*22= 484.
(and this target shouldnot make anyone uncomfortable given that the PEG ratio remains 1).
>> Just to add...it plans to invest over 2000 crores in the Real Estate projects in times to come...the valuations can only go up.

More about it: here
>> Value of Land Bank as per Kushagra Ansal, President at Ansal Housing and Constructions : 900 Crore
>> No. Of Outstanding shares : 1.492 crores.
>> The value of land bank works out to be around Rs 600/share.

If one considers the value of the landbank, the price target could work out to be around 1000 with a year's time frame in mind.

Why this blog?

Its been over an year now since I have been following the Stock Markets. Its very easy to sit on the fences and make calls where the prices should go in the times to come but its a different thing to put it in ink and let the markets decide your fate.

So, this is what i came up with: have a blog which would serve the purpose of listing out my picks from the market and to put it in ink so that over a period of time I may be able to evaluate how much I have been able to fathom the moods of the market.