May 30, 2008
Electrosteel Castings
http://www.thehindu.com/2008/01/25/stories/2008012556221900.htm
Electrosteel gets mining lease
KOLKATA: Electrosteel Castings has been allotted a coal block in Jharia coal field at Parbatpur near Bokaro in Jharkand with a coal reserve of about 200 million tonnes of prime coking coal.
As on May 28, 2008, international price for coking coal was approximately 100$ per tonne.
Current Market Cap. Of Electrosteel Castings is Rs. 1358/- crores at Market price of Rs. 49/-. Adding debt of Rs. 661/- crores (which it has taken for developing the mines), the Enterprise value comes to Rs. 2019/- crores.
When we calculate the value of the 200 million tonnes of coking coal, we get a value of approximately Rs. 80,000/- crores which is going to be realised over a period of 20 years. When we capitalise this value at 15% per anum for 20 years, we get the present value of approximately Rs. 5,000/- crores.
Looking at this we get a huge discount at current market capitalisation of Rs. 2019/- crores. Moreover, the management of the company has a pending conversion of warrants exercisable at Rs. 76/- per share.
Gulf Oil Corp
http://www.gulfoilcorp.com/press/press2008may26.html
Excerpt of Gulf Oil Press Release
Property Development
Based on the approvals received for a mixed use IT Park on 40 acres of the Company’s property at Yelahanka in Bangalore, preparatory work prior to construction activity is in final stages. Construction activity is planned to start in about 2 months through the selected Developer.
Regarding the Hyderabad property development, plans for a Knowledge City over 100 acres oriented towards the fast growing R&D segments has been conceptualised and awaiting approvals from the Government of Andhra Pradesh.
Shakti
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