IFCI - Long Term Pick

IFCI - A Dark Horse


IFCI Ltd has clarified that the Company has filed recovery suit in DRT, Delhi, which has issued a 'sale proclamation'. Accordingly, sale notice was issued in the leading daily in November, 2006. However, the sale of land and assets has not yet materialized.
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IFCI has called for bids for its 750 acres land at Sultanpur. It has fixed the lower price to Rs. 250 crs. As per the industry sources, minimum worth of the land will be in range of Rs. 800 crs to Rs 2000 crs, & DLF is bidder.

Also NSE has a additional stake of 5% in NSE & are planning to offload as per the rumors going on Dalal Street, Though management has denied it.

IFCI Ltd has also informed BSE that it has decided to sell its equity holding of 21% along with Specified undertaking of UTI (SUUTI)'s holding of 8% in ICRA through an IPO.

IFCI has investment of almost 1000 Cr. at market value & also has stake in companies like DFHI, OTCEI, SHCIL & others.

Summing up, this will fetch IFCI approximately Rs. 4000 crs which will boost the net worth into positive to the tune of Rs 2500 crs. This in turn will make book value at Rs 40 per share & EPS for 06-07 can be above Rs 50 per share.


Along with this, as per the latest development,

IFCI Ltd has informed that the Board of Directors of the Company at its meeting held on March 22, 2007, has decided to appoint an Advisor, Ernst & Young, for advising the company, inter alia, on the induction of a strategic investor in the Company.
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Considering all this facts & figures, IFCI can easily cross Rs.50/-
Technically it has hurdle in the range of Rs.32- Rs.35.

For Long Term Theory Lovers, considering all above facts & the current development regarding strategic Investor, the valuation is mouth watering, though it is near 52 weeks high.

Disclosure : I may have position or maybe trading in above said stocks for myself/ family members / friends / Associates.