Analysis for Feb 2015 - IBWSL

PICKS IN A TIME OF MARKET PEAKS

1.    One of the most difficult questions, you can be asked in a good bull market is " Are there any value picks available". This is because one is reluctant to invest in stocks that may have run real fast, no matter how good they look. In addition, any languishing stock is looked at with suspicion. But, in times as these, it is possible that Mr Market may have overlooked some stock that actually offers value.

2.  In this write up, I present a stock, that , purely by numbers, offers great value. Do not rush to pick it. Make your own analysis. Not being from a  financial background, it is likely, that I may have missed on the fine print. But I have glossed over the AR and seems that markets has missed this stock!!

INDIABULLS WHOLESALE SERVICES

Highlights of Annual Report 2014

1.        Role of the Company:-

Ser	Area	Revenue in crores Rounded Off	PBIT Cr	Remarks
(a)	Real Estate Development	43	07
(b)	IT	115	04	Hived Off this year
(c)	Facility maintenance	64	22
(d)	Equipment Hiring	42	26
(e)	Trading	02	-0.5

2.        Revenue and profit Contribution.      As seen above, the maximum contribution to the bottom line is not from IT as perceived by the market man, but from Facility maintenance and equipment hiring.

3.        Hidden Wealth.     The real gem is the investment in Store one retail. The company owns approximately 2.04 crores shares (2.76 total equity) of listed company Store One retail at a FV of  Rs 10.   

(a)  At face Value     :           20  crores

(b) At CMP (35)       :           70 crores.

4.        Store one , in the past two years has turned into a profitable company making around  20 crores a year with an EPS of Rs 10.

5.        IBWSL  is a zero debt company. Assuming after, hiving off the IT division at near throw away prices, the net profit of the company hereon is lowered to 20 crores per year. At a present market cap of   60 crores and Zero Debt , this company having assets of 800 Cr  which includes 766 crores of reserves, is available almost at a free / 100% discount / actually at 1/10 of its real price in the market. And with it comes the offer of getting 75% of listed store  One also at a throw away price.