May 13, 2010

Get Godrej Industries Ltd-& Get Godrej Consumers' and Godrej Properties

Godrej consumer:
Equity Capital is 30 cr 81 lakh
Market Capitalisation is 9243 cr at 300
Godrej  Industries holds 23% (2125 of current Market Capitalisation)
Godrej and Boyce Manufacturing holds 41%.
71.79% Promoters holding.
Institutional Holding-13.73% by-abardeen, first state hongkong ltdl  hsbc, ilfs trust, and small cap world fund.

Godrej Properties Ltd.
Equity capital is 69.85 cr.
Market Capitalization is Rs.3422.
God Ind. holds 69%. (2361 of Market Capitalisation)
83.79-promoters holding-83.79%.
Nstitutional holding-close to 5%.

Godrej industries ltd:
Eq. capital is Rs. 31.76 crore.
Market Cap is 4764 crore. At Rs.150.
Reserve of Rs.981 crore.

Godrej and Boyce manufacturing Co. holds 69%.
Godrej Ind holds 23% in Godrej Consumer, and 69% in Gojrej Properties.
This Equity Stake amounts to 2125 Cr. And 2361 Cr. Of Market Cap for Godrej Industries; in turn amounting to total Godrej Industries Market Cap of 9250 cr. (Godrej Ind’s 4764+Godrej Consumers’ 2125+ Godrej Properties’ 2361=9250).

Thus in terms of Market Capitalisation. Godrej Industries Ltd share is underpriced. I don’t say it is under valued. This is in no mean a method of value investing. It is just a calculation to find market discrepancies.
Instead of buying Godrej Consumers or Godrej Properties, You can think to Buy godrej Industries for a 100% upside from current 150 levels. Till the Market Capitalization of Godrej Industries reflects its shares in Godrej Consumers and Godrej Properties.
 79.10 % held by promoters
59% held by Godrej and Boyce mfg co.
Il & fs and sbi equity holds 7.23%.