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TTK Prestige – Undervalued + Delisting Plans

August 27, 2008

TTK Prestige has enviable Real Estate Holdings – Property on Old Madras Rd, Bangalore is right opposite to the upcoming Metro station and is valued at Rs.80cr to Rs. 120cr. The company also has factory properties at Coimbatore and Hosur (apart from Uttaranchal). The Hosur property is huge and production is being shifted to tax free Uttaranchal as well as to less expensive Coimbatore.

Retail Foray: The company operates 180 odd stores which have been opened in the past 12 to 24 months. In retail the new stores start giving top line and bottom line results in 18 months. So the PAT level should move up from the current Rs. 20cr PA levels to an annualised Rs. 35 cr or more in another one or two quarters.

Based on above thesis, the company should be valued at :
Real Estate: Rs. 100cr
Retail Ops: Rs. 350cr (35crX 10PE)
Total: Rs. 450cr

Against this the company is currently valued at Rs. 140cr or so. Market operators say, not to sell away this GEM. The company price should be atleast 2x the current price, ie around Rs. 225 to Rs. 260 per Share.

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