Remi Metal Gujarat , a 25 year young company, is into manufacture of special alloy steel and Seamless Pipes and Tubes ranging in sizes from 1″ to 9″.It has Technical collaboration with M/S Intertech GmbH Germany. Electric Arc Furnace based integarted steel and seamless pipe plant has capacity of 50,000 TPA . It also has 140,000 TPA of steel manufacturing and steel rolling capacity. The company is located in Gujarat on a 150 acre plot in Distt. Bharuch, just about 23 kms. from Ankleshwar and 85 kms from Dahej and Hazira.
Company’s equity capital is Rs. 75.6 crores divided into 12.6 crore shares of Rs. 6 FV. At CMP ( Rs. 6.95 ) its market capitalisation is less than Rs. 90 crores.Companies like Welspun Gujarat, Man Industries,Jindal Saw,etc. must be eyeing to acquire this company as its a perfect fit with their present very profitable operations.
Dryden ( Mauritious ) Ltd. holds 36.72 % of the company’s equity and 34.58% is held by public.In case Dryden is willing to transfer the equity at an appropiate price which could be anywhere above Rs. 50 per share ,the company will change hands and the Indian Public will be able to sell the shares in Buy Back at a considerable premium to CMP .Overnite the share will turn out to be a multibagger.
Over the last few Quarters of FY 07 , Its operations and financial results are showing a definite improvement. Top line has gone up by 330% during the last two quarters, and net loss has dropped by almost 800 % from Rs. 18.4 crores in Q2 of FY07 to Rs. 2.2 crores in Q4 of FY07. A turnaround in company’s operations is clearly visible.
Scrip Code : 500365 Company Name : Remi Metals Gujarat Ltd
(Financials reproduced from BSEINDIA)
Cost of such a plant with 150 Acres of land, strategically located closer to Ankleshwar town, an all weateher port at Dahej and Hajira, excellant technical collaboration and manufacturing seamless pipes used in Oil Exploration,Crude Oil, Oil Products, Gas and Chemical transportation ,automobiles,forging and castings industry could be easily above Rs. 500 crores on a very conservative basis.Therefore share available at close to its PAR VALUE is an excellant BUY.
BUY is recommended at CMP with 2 years HOLD
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