Equity Watch

Marson Ltd,a takeover target buy back @ rs 30 expected in this year

Marson Ltd  manufacture Power and Distribution Transformers ranging from 10 KVA to 160 MVA to 220 KV Class, Furnace Transformer, Dry Type Transformers and various types of special application Transformers.

Marson’s expertise encompasses Design, Development, Manufacture and Testing of Power and Distribution Transformers. Transformers of various rating, which includes 50 MVA 132 KV Class, have been successfully type tested at CPRI in Bhopal and Bangalore.

Marson  have supplied more than 200,000 Transformers of different Voltage and MVA Class Across India during last 5 decades.

Marson is in the process of becoming a debt free company by allotting 2 cr shares  @ Rs 30 per share to two entities based in Dubai.These companies are  in the same line of business as Marson plus in facility management..This transaction will bring down the equity of present promoters of Marson to less than 25% from existing 40% ..

This will lead to probable change in Management and a buy back from the existing shareholders @  Rs 30 per  share.

This makes the share worth buying at present value which is close to its PAR value of Rs 10.Past allotment of shares the company’s equity will increase to Rs 45 cr from Rs 25 cr at present,  and its BV to Rs 28.Marson will become a debt free company for the first time..

Buy is recommended for long term HOLD

 

Caveat : I HOLD

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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