Saturday, March 13, 2010

VIJAY SHANTHI BUILDERS - THE SURVIVOR


First of all,I am not a strong advocate of real estate sector companies mainly because of the difficulties involved in valuing  such companies based on area of land bank it holds. Secondly, it is a highly interest rate sensitive sector and I am not believing that we will  get any positive support in near future from this aspect. But in any case , if I am forced to select a small cap company from this sector that will be  Chennai based Vijay Shanthi buileders.It is one of the very few companies surviving now  after came out with IPO in the first real estate sector boom which happened in 1992-93 period. Most of the real estate companies started at that time disappeared even without a trace. Vijay shanthi came out with an IPO way back in 1993 and still remaining as a known player in Tamilnadu because of their quality and timely delivery. Company has already completed atleast 50 projects so far and another 14 projects are under implementation. Vijay shanthi also have a small mineral water plant too (turnover  of Rs.2.5 crore last year.).Being an old player ,company having land bank at reasonable price to be developed.

                                                               Company has posted a NP of Rs.2.6 crore in March 2009 full year and declared 4% dividend even it was one of the most difficult year for the company and most of the other small players went into huge losses . Earlier in 2008 March company were posted a net profit of Rs.14 crore and an EPS of Rs.12 .Vijay Shanthi  is expected to post better result in this year than last year. In 2009 promoters have taken 1862200 shares @ Ra.56 /- .Price of Vijayshanthi is currently ruling  @ Rs.35/- which seems as the lowest risk small cap real estate stock ,mainly because of the company’s reputation and overall quality.

9 comments :

  1. Dear Valuepick,

    Vijayshanthi is completely asset play.

    FYI : http://beta.thehindu.com/news/states/tamil-nadu/article103274.ece?homepage=true

    ReplyDelete
  2. Dear Value Pick,


    FYI: indian ppl can buy US Stocks from India thru NSE. http://beta.thehindu.com/business/markets/article228670.ece

    Also Jayshree Chemicals coming up with Right issue for expansion plan. Take a look @ it http://beta.thehindu.com/business/article243718.ece

    ReplyDelete
  3. Mahesh,I feels it is only US indices now not stocks.

    ReplyDelete
  4. Dear Value Pick,

    The domestic fund houses, even retail investors, will be able to hedge their risk by taking counter-positions in US indices.

    FYI : http://www.business-standard.com/india/news/sp-500-dow-nownse/388210/

    ReplyDelete
  5. SHIRPUR GOLD:
    LATEST UPDATE:
    KIRTISCRIPSCAN.NET

    I am realistic and optimistic too I am here in stock MARKET for making money and not for promoting any company I just shared information I got It is upto the individual to believe it or not You can take example of jai corporation roumour/news way back in 2006 when it was quoting 200+ No one believed it and not a single expert made any recommendation to buy it but it went upto 25000 and even now stock is available at 262 but 1paid up and 1:1 ex bonus means still at 5000+ on a 10 paid up and before bonus Still jai corp is in doldrums but stock price you see why just because Anand jain close friend of Mukesh Ambani Friends here it is ZEE group fantasti promoter excellent credentials proven track record has taken over company a year back.He has invested billion rupees to see the company in action and make profit Yes it takes time because of several legalaties etc etc Now all these things are settled and company is about to run anytime now I have learned and I know one thing that in such stocks one should buy it when available without stop loss.Yes without stop loss otherwise you will be out and can never buy it Guy`s go for it with full faith atleast in ZEE management only Thanks ...

    ReplyDelete
  6. Highly non-transparent business, dealing in amounts much larger than company market cap. low promoter stake.

    Despite such a low market cap, why the promoters have not tried increasing their stake - I get to doubt the integrity of those in control and would stay clear of this.

    ReplyDelete
  7. the above company "vijay shanthi builders"
    he has a secured loan of amount 55.70cr, and
    unsecured loan of amount 4.09cr. but he is showing the interest burden of amount 0.006cr quarterly.
    why is this interest burden so less.??

    http://www.moneycontrol.com/financials/vijayshanthibuilders/results/quarterly-results/VSB


    http://www.moneycontrol.com/financials/vijayshanthibuilders/balance-sheet/VSB

    ReplyDelete
  8. now the stock seems to be moving in anticipation of interest rate reduction. is it a hold now also

    ReplyDelete
  9. Csn you review recent price movements in this stock please and its prospects please?

    ReplyDelete

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