|
STOCK
UPDATE
Gateway
Distriparks
Cluster:
Cannonball
Recommendation: Buy
Price target:
Rs250
Current market price: Rs178 |
GDL acquires control of
Snowman
Gateway Distriparks Ltd (GDL) has
acquired a 50.10% stake in Snowman Frozen Foods
(Snowman) for Rs48.12 crore. This deal puts the
enterprise value of the firm at about Rs104 crore. GDL
will infuse fresh funds in Snowman by subscribing to
34,390,000 new equity shares of Snowman at a price of
Rs10.50 per share. Further GDL will purchase 861,000
existing equity shares of Snowman at a price of Rs17.50
per share from Amalgam Foods. GDL is already sitting on
a huge cash pile of Rs300-350 crore that it had raised
from a global depository receipt issue earlier this
year. Hence the funding of the latest acquisition will
not be an issue.
ICI
India
Cluster: Ugly
Duckling
Recommendation: Buy
Price target:
Rs430
Current market price: Rs372
ICI India to divest its stake in
Quest India
Key points
-
ICI India has announced that it
will sell its last subsidiary, Quest International
India Ltd, which is in the flavour and fragrance
business. This is a strategic move by the company to
concentrate on its core businesses of paints and
chemicals.
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At the current market price the
stock trades at 20.4x its FY2007 estimated earnings.
We maintain our Buy recommendation on the stock with a
price target of Rs430 based on the sum-of-parts
valuation
method. | 
