Friday, March 5, 2010

Why is this company so richly valued?

Recently, there was a change in BSE500 Index. A new company Shree Global Tradefin Limited was introduced in BSE500 Index. I was surprised, since I had never heard the name of the company. After looking at some of the data, I found that the company's market cap is around INR 5000 Crore, i.e. $1.1 billion. That's more than that of BEML or Britannia. The company's revenue last year was around INR 310 Crore, i.e. $70 million. and profits are almost NIL. Till FY2005, the company didn't have any revenue at all. The company's total revenue was less than INR 100 Crore till FY2007. The company in the last ten years haven't paid any dividend. The company's website is still under construction.

The company's equity capital till March 2005 was INR 205.81 Crore consisting of 20.581 Crore shares of INR 10 each. In FY2006, the company reduced its share capital by half and it became INR 102.905 Crore consisting of 20.581 Crore shares of INR 5 each. Since the share price is around INR 240, the market cap comes to INR 5000 Crore.

Strange case!!! Is SEBI listening?
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Saif said...

hi chinmay...small doubt
how do we get financial data of companies for past 10 years or more..most companies list max only past 3 years data and mcontrol and others have max 5 years..
what is your data source..could you please share some useful links.

Chinmay said...


The companies provide annual report for not just last year but for many of the last years. There are three ways you can get them.

2) Go to company's website and Investor Information section will have annual reports of many years.
3) Instead of annual reports you can check Profit & Loss account of a company on moneycontrol where previous year results are also made available now which were not present earlier.
e.g. See Asian Paints results here

Now click on "<< Previous Years" and you will get results before 2004.

Saif said...

thanks for the reply ...those links are helpful...
sebi does not give past 2002-2003..i a bit skeptical abt the data from mctrl though...have found discrepancies few times...
the accurate one is to get from companies websites ,but like i said many companies nowadays don't have links to reports past 2004-2003...apart from these there is also
nice collection and breakup...

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