Navbharat Ventures, Dr Reddys, Godrej properties and Bombay Burmah Investment Pick !!

NB Ventures — the stock can see a quick move to 240 + levels.

Disclosure: Recommended to clients and will also be mentioning on CNBC.

Dr Reddys — Keep a close watch on 1700 mark.

Godrej properties — I continue to favor this management and the above stock is the best in real estate space in terms corporate governance. Watchout for a move above 680 for quick 10-15% jump.

A quick Update on Bombay Burmah Trading Corporation — the stock has been recommended yesterday.

Lets have a quick look

Through Leila Lands Bombay Burmah owns 50% in Britannia  — Value 3150 cr

14% stake in Bombay Dyeing — value 280 cr.

They showed a profit of around 130 crores from sale of two of its divisions. ( the slump sale was for almost 100 + 180 cr )

The company is more then 100 years old and the Real Estate it owns can be enormous

So overall holding value should be a minimum of 3500 crores ( this is on quoted investments)

Current Market Cap – 650 cr.

The stock is available at 80% discount to its holding value.

We are giving no value to the tea and coffee estates  ( 2000 + hectares ) + real estate and many more subsidiaries. They also might be holding some stake in other group companies and majority of the assets would be at 1 rs in the balance sheet as its a 100 year old company.

So if the stock does go through some restructuring of assets and slump sales we can see a lot of Value Unlocking. My expectations is with the slump sales of sunmica and other divisions the management is clearly hinting towards Value Unlocking

From current levels the downside could be limited to 400-420 levels fundamentally but upside can be anything . The major reason to buy right now is technicals – Huge Volumes and Price Action .

Last year also in Mid 2010 we had picked up Bombay Burmah  at 400-450 and booked profits at 550-650 in short term on technical timing. The stock has been on radar for a long time. A similar stock is Bengal & Assam which has super but we may wait for a move above 250. Check detailed post on it — Bengal & Assam Company

Disclosure: The stock has been recommended strongly to clients

TECHNICAL ANALYSIS TRAINING SESSIONS SCHEDULE

MUMBAI 25-26th FEB, 2012.

AHMEDABAD MARCH,2012.

To know more contact: Kazim on 09821237002 or Asif on 09833666151

Happy Investing,

Nooresh Merani

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1. Bombay Burmah –Investment pick on verge of Breakout.
2. Bombay Burmah Trading Corporation— 20% Circuit !! – Hope people enjoyed
3. Small Cap Coverage – Bombay Burmah Trading Corporation
4. Small Cap Coverage Update – Bombay Burmah Trading Corporation Limited
5. Godrej Inds – Low Downside Risks– Huge upsides in Long term – An important pick for a long term portfolio.