Equity share Capital – Rs. 31.98 Cr
Market Cap – Rs. 4128 Cr (As on 27/05/2009)
Face Value – Re. 1
Reserves – Rs.1010 Cr
Book Value – Rs. 32
Total Debt / Equity – 0.41
Last Bonus Issue – July-95 in the ratio of 1:2
Godrej Ind. Holds around 83% stake in Godrej property. Godrej Property has landbank of around 450 acres (around 20 million sq ft) in various parts of the country. Interestingly, major portion of the land is in city area. They have huge landbank in Mumbai. So even if you take an average of Rs. 2000 per sq ft rate, the valuation comes to around whopping Rs. 4000 Crore. Whereas market cap of Godrej Ind is Rs. 4100 Crore. Apart from real estate business, the company is having interest in many other businesses & group companies. Also promoter of the company, Mr. Adi Godrej (who holds 78% in Godrej Ind)has announced buyback upto Rs. 275 per share, aggregating around Rs. 100 Cr which shows the confidence of the promoter in the company.
Also the realty market has started showing improvements due to the various product mix offered by the developers such as Budget housing.
All these factors taken into account, I see Godrej Ind as a multibagger & one can buy on every dip.
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