BSE 534338
MAXHEIGHTS
The changing dynamics for Maxheights limited.
Recently the stock was in the news as the company was holding a large parcel of land near North Delhi Campus worth 550 crores and few groups are interested in buying out the land parcel.
In 1991 company got alloted the land parcel adjacent to DU campus and now the company is in talks to dispose off the land as last month only they got gorest clearance and clear title of the project
Promoted by Narang group the company would like to utilize the entire amount of money in building its flagship project Aravali one and retire the debt of 102 crores from the sale proceeds.
As per latest Value the land is valued at 13 crore in the books adjusting for indexation the liability of tax is approx 110 crores . So the company will realize appx 440 crores from sale proceeds of land
On market cap of 90 crore the company is going to have 340 cr of cash after retiring debt. The aravali one project is going to fetch them approximately 300 crores of revenue and margin of 20%
Over next 4 years the company is planning a total of 4 projects worth 830 crores http://www.maxheights.com for which the land deal was hurdle. Now with the land deal getting cleared this can be multibagger for the year.
However at market cap of 90 crore and cash value of 350 crore post adjustment it do not qualifies as straight 4x winner. But given the deep discount I feel the stock should float between a market cap of 150-200 crores and its how aravali ones and other projects will come in play will interest us going forward
Given the deal going through the stock will fly going forward. The company is also going for low cost housing and doing a 800 flats project with Haryana government
Sir,
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