Equity Watch

Grauer and Weil:a small cap today,a large cap tomorrow

Grauer and Weil is one of the very few metal finishing houses the world over, capable of offering an integrated package of chemicals, plants, effluent treatment systems and waste recovery techniques from spent solutions – Truly a ONE-STOP-SHOP for end-to-end solutions.

Started in 1957 as a Plating Co., today its a diversified company with interests in Paints (acquired  Bombay Paints in 2008 ), Special Chemicals,Effluent Traetment Plants,Recovery from Waste spent Chemicals, Lubricants ( in collaboration with SIDASA Spain)and property Development with 750,000 sq.ft of commercial space in the heart of Mumbai.Commercial space known as Growel101 isshopprs delight …

Promoters hold 68% of the Rs. 22 crore equity, and 50 % of the equity has come from Bonus shares.Co.’s Management have decided to split Rs. 10 paid shares to Re. 1 paid up share(see here) , thus increasing the liquidity in the market.

Company has 7 plants located at different parts in India and Shpoppertainment commercial space in the haert of Mumbai..

Valuation of 750,000 sq. ft of commercial space in Mumbai will be no less than Rs. 1500 crores while the market cap. of the company is less than 1/10th or  Rs. 150 crores at CMP of Rs.67 …With Rs. 128 crores of loans the whole company is highly undervalued and the share price can shoot up once the real value of the company is known.

Results for FY11 are good with EPS of 6.7(see  here) and are likely to take a quantum leap once all the 750,000 sq. ft of commercial space is leased out..

Buy is recommended for a  LONG term.

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


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