Carol Info Services Limited (CISL) is a subsidiary of Khorakiwala Holdings and Investments Private Limited. Pursuant to a scheme of arrangement, the pharmaceutical business of the Company was demerged into Wockhardt Limited with effect from January 01, 2000. CISL, formerly known as Wockhardt Life Sciences Ltd is currently engaged in contract manufacturing in the nutrition industry. Its plant in Lalru, Punjab manufactures neutraceutical and other milk-based products for Wockhardt Ltd.
CISL is an asset rich; almost debt free company with a property portfolio that
generates substantial rent income (Rs. 6.63 cr in FY07) and it has an investment portfolio whose value unlocking could lead to a potential upside for CISL.
CISL has investment in Real Estate at bandra Kurla Complex. Value per share of CISL is Rs 22 / share. CISL holds 67,50,000 shares (Rs. 10 FV, 9% of pre-ipo equity) of Wockhardt Hospitals Ltd (WHL) for an investment value of Rs. 5 cr. This investment translates to Rs 25.7 per share value for CISL.
The Sum of the Parts valuation model (SOTP) to arrive at the target price of CISL under two models – the Discount Market Price model and the Earnings capitalization Model. Under the DMP model the fair share price of CISL is Rs. 144.5. HDFC Maintains a BUY with a Target price of Rs 144.5