How the movie Mughel E azam is linked
to Tata group? And who is the single largest shareholder of Tata Sons (Holding
company of Tata Group)?
Well the answer for both these
doesn't have any link with Tata. I come to second question first, the single largest
shareholder is Mr. Shapoorji Pallonji Mistry, the 82 years old veteran of
Shapoorji Pallonji Group who holds 18.4% in tata sons and he was the person who
produced the Movie Moughel e azam with whopping 1.5 cr in 1952 and then spent 5
cr for giving it colorful touch in 2007.
Shapoorji pallonji group made huge
factories for tata group which offered them shares in its group companies as
payments. They further acquired stakes of those who left tata group and thus
leading to current holding of 18.4%.
His daughter is married to Noel tata,
half brother of ratan Tata and MD of Trent Limited (Retail arm of Tata).
But most importantly he is the father
of Cyris Mistry, new chairman of tata group.
SP group is one of the largest and
best construction group of india (Also oldest around 250 years Old) credited
with some of the country’s most iconic constructions, including the Taj
Intercontinental Hotel, the Reserve Bank of India building,Bombay Stock
Exchange building and the HSBC building
all in Mumbai and some famous sports stadia such as the Braboune stadium in
Mumbai and the Jawaharlal Nehru stadium in Delhi.
Apart from these,the company has
built a stone palace for the Sultan of
Oman in 1971.
After the 2008 Mumbai Attacks,the
company was involved in the repairs and renovation of Taj Mahal Palace & Tower which was severely damaged by the attack .
Other notable projects include The
Imperial in Mumbai, Jumeirah Lake Towers in Dubai and Ebene Cyber City in
Mauritius.
They are around 15000 cr group. Their
construction business is not listed. But they have some very interesting
business listed in india and that is what got my attention.
Water will be the next big thing in
the future...next gold. we can survive without power and petrol but not without
water. Hence i think all the companies dealing in water technologies (Only
serious and Honest Groups) are great for investment. we picked Va Tech Wabag
around 450/- and it touched 580/-. Now it is around 535/- and is still a great
buy.
but there is another company which is
having the lion's share ( around 60% ) of indian water purification market.
what will we see in our mind if
someone says 'Cadbury'? we recognize 'milk chocolate', say 'Xerox' and we
understand photocopiers. Say Aquaguard? and here we are...it is water purifier.
Yes , it is the one who teaches us if
something looks clear doesn't mean that it is safe...EUREKAFORBES. It is part
of the Pallonji group, but it isn't listed directly. Infact it is 100% subsidiary
of group's Listed company Forbes Gokak Limited, Which is mainly into precision
tools and shipping/logistic sector with turnover of around 300 cr. it was in
losses sometimes back but coming back to profits now.
However their main crown Eurekaforbes
is having a turnover of around 1500 cr with NP of 35 crores. it is the company
which brings the concept of direct selling to india in 1990's and still today
it is having a dedicated workforce of around 8000. On the most of it, it is
featuring among the best employers list of india for last three years. this
feat of having 8000 strong workforce of direct selling employees is almost
impossible to emulate in today's world. they were the main building blocks of
the success of Eurekaforbes, because the locations, which are having water
supplies having less dissolved particles, they don’t need RO system...but you
need experience selling agent to check all these variables and this is where
Eurekaforbes scored much better.
when all the companies in india has
one line in their mission statement "To Enhance/maximise shareholder
value" , Eureka is having Customer satisfaction and relationship as
mainstay of its corporate existence vision. And this Customer Concentration is
what renowned management schools are teaching now days, leaving aside the shareholder value
maximisation. A pharma company can enhance shareholder value by selling a
product which is dangerous for public health.
But you care for customers and you
become a brand, a force to reckon with and shareholder value grows up
automatically. Indian companies copy these management Mantras from their
western counterparts.
how
can "maximising shareholders Value" can be the mission of a comapny?
doesn't it look too selfish and vague? It was western companies like
Ford who brought the mantra
of Professional management setting aside management by family persons
from
promoter group. Professional people are required when scale of business
becomes
very large for a family conglomerate or where specific skills are
required like
our Air India, The maharaja which is ailing because people who are
running it
doesn’t know anything about an airlines.
Eureka forbes is bringing in some
great water purifying technologies into india like one iodine based earlier
used by NASA for its space programmes. Iodine is very safe compared to chlorine
and bromine. It is eyeing global
footwork and has entered into a jv with Lux international from Switzerland (
Not our Lux Soap) forming Forbes Lux Inc to distribute water/air purifiers, security system across the globe
mainly in west Asia.
The credentials of management group
are top class since one of their director Cyris Mistry is now steering the Tata
group. I don’t have any reason to be sceptic of management group. Shapoorji
Mistry, 48, the elder brother of Cyris is now heading the group who has strong
ambitions to take the group to global scale. The whole SP group is media Shy
and they rarely appear into the scene or media. They are very humble and down
to earth people.
Their precision tools business is
also growing. I couldn’t study much about their shipping business which i feel
can also grow stronger in line with overall growth in Indian port based logistic
business. Their new venture Forbes Technosys which is into process automation
segment like ATM’s, MICR handlers, includes e-Governance solutions such as G2C
transaction kiosks, bill payment kiosks, POS terminals, electronic cash registers,
portable biometric enabled platforms for UID registration and authentication. It
has already won several innovation awards globally .
The turnover for this segment doubled
in 2011-12 to 91 cr from 45 cr. It is having strong order book from banks and
govt dept and added several new customers like
volkswagan, shriram finance, maruti suzuki. It got its first order from Indian
railways for 80 ATVM’s ( automatic ticket vending machines ). Although it has
incurred losses of 8 crores but future is great with the increase in scale.
It is having 22 subsidiaries , but
scale of others are small. Its stock price is at 530/- after touching 1075/- from
400/- after the news came for Cyris mistry to mentor the tata group. its 2008 low is around 350/-
hence its price is still not upto its full potential. On the basis of 2012-13 consolidated
results, it has achieved a turnover of 1976 crore with Net profit of 83 crore with EPS of 67. it is trading at a PE ratio of around 8 which is low given it has great scope for ample growth going
forward.
Group may consider listing some of
its unlisted companies like infra and construction. But for Forbes Gokak, the
real value lies in Eureka forbes and if it gets listed then the price can touch
sky. It is a very vast group and i’m yet
to study some of the main segments of their business like their venture of
solar lamps named Eurodiya ,their foray into packaged bottled water through franchise
mode etc.
But for me it is a buy at current
prices and at a every fall. Only problem is it is traded at a very low volumes hence fragmented buying is the best option.
Regards
(Views are personal and should not be taken as a recommendation for buy or sell a stock. Stock markets are inherently risky so kindly do your Due Diligence before investing)
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