Noble ExplochemLtd:
Big Big Trigger for Noble Explochem Ltd
Top pick in DarkHorse/Turnaround:
Presently plant shut. Once BIFR gives approval to rehab package, co will start production:
A. Huge demand for explosives ( look at price of Solar Ind and Premier explosives).
B. Co will also produce petrochem product which is used in refining of diesel/petrol by RIL, E Oil, hpcl bpcl IOC etc.
C. 1200 acre land ( co will not sell land) near wardha. Part of it will be used for Farming
D. Ready reckoner rate of this land is 90cr but market value 250+cr.
E. Co already has letter of intent from 6 customers of explosives who have given undertaking to buy 12500 tonnes in 1st year ( when co resumes production). So, zero marketing problem.
F. NEL is confident of huge profit margin ( can't reveal figures) from the day production starts due to lowest overheads.
G. In DarkHorse Turnaround companies, NEL is my TOP pick (when I recommended Mangalam Drugs in 2014 at Rs 7, no one was convinced that M Drugs will be amongst highest gainers (stock touched 441 in 16-18 months). I feel NEL can be ( if markets don't crash) be 100+ in 15 -18months. I will not be surprised if stock is Rs 300-400 in 4-5 years. However, NEL for investors and not for traders
Big Big Trigger for Noble Explochem Ltd
1. Equity Stake by a high profile Bse Listed entity: Listed at Bse, Mumbai based company (which is in motion film production and treasury operations, has strategic investment in subsidiaries and joint ventures (manufacturing bulk drugs, drug discovery, development of discoidal electrical motor technology) will be taking Preferential Offer in Noble Explochem. Currently, this Listed entity is trading at Bse between Rs 700-800. This company has already MADE PAYMENT for taking preferential offer, hence taking stake in Noble is 100% SURE/CONFIRMED. If a such highly valued company has decided to take stake in Noble Explochem, it indicates that this new investor
envisages bright future for Noble. Due to obvious reasons, we are not disclosing name of this Bse listed entity. We are sure that once, shares are ACTUALLY ALLOTTED to this entity, share price of Noble will go up immensely. Hence, investors reading our blog may take advantage of this important development now only by buying Noble at current market price because Mcap of Noble is just 30 crores whereas market value of its 1200 acre land is pegged @ Rs 125 per share.
2. Under BIFR scheme, promoters are infusing funds for allotment of Equity shares. Post infusion of funds/BIFR scheme implementation, promoter's stake WILL RISE to 74.41% from exisitng 16%. It indicates that promoters find deep value in the company (1200 acre land bank, plant to produce Explosives and plant to produce Petrochemical product). 74.41% stake means enhanced confidence of investors in co's future. At present, some investors may be shying away from buying due to current low promoter stake.
3. NEL has already finalised VRS for its 25 year old entire workforce of 226 workers. When NEL is ready to resume production, it will make fresh recruitment of only 90 workers to run the plant. It will bring DOWN WAGES COST BY MORE THAN 60%. Firstly, work force will stand reduced to around 40%. Secondly, monthly wages of fresh recruits should be lower than those employed for 25 years. Such a move will help NEL to expand its profit margins
WHAT ARE CHANCES OF STARTING OPERATIONS AGAIN? WHO IS STAKE TAKER?
ReplyDeleteno sells since 2008 .
ReplyDeletedo u expect production to start soon and company can report profits in fy16 or in fy17 ?
When is the expected announcement sir?
ReplyDeleteProduction may start only after 3-4 months
ReplyDeleteProduction may start only after 3-4 months
ReplyDeleteDear Den,
ReplyDeleteAppreciate your vision on value and price. Few Questions:
1) I checked the BIFR site with all verdicts on latest cases, nowhere i see that Noble Explochem is our of Sick Status? Where do you see it Please?
2) Where do you get information that Promoters are going to increase their stake from 16% to 74%? I just do not even see any clue where you got that information from?
3) How come the point 1) above is not filted to BSE yet? It should be reflecting in BSE announcements by now. No?
THanks
Ankur
Mr Ankur
DeleteWe appreciate your various queries pertaining to Noble Explo. We wish to reiterate that EVERY info on our blog pertaining to Noble is accurate. Many facts are neither in public domain, nor elucidated by promoter in annual report. But still we are privy to most confidential info. That is why, it is BREAKING NEWS in real sense. You can trust our integrity. We will not put any wrong/fake info on our blog
Sir ..i booked some profit in another stock..today..do you suggest to put that cash in noble...its going down agin from sometime so looks risky..but as per your news it can be a jackpot too...feeling confused 😁
ReplyDeleteMr Vikas
DeleteReg your query about Noble. Since 2 days it is going up but still
sharply lower than recent high. Scrip had gone up too much too fast
which led to furious profit booking by almost all investors except,
perhaps, by me and a few others. I have full full confidence that
stock should be in 3 digits. Problem is that most investors these days
behave like traders. Personally i bought this stock even @ 16.60. It
will go up, it may come down. That is how market works. But if you
have patience, you can buy and hold for 1-2 years for REAL MUTLIBAGGER
appreciation
In near future, we shall be doing some more Breaking News on Noble
http://bifr.nic.in/asp/detail1.asp?caseno=4&year=2011
DeleteCase No. Company name
Address
Status Date of Last Order
4/2011 NOBLE EXPLOCHEM LIMITED 54/B, Shree Towers, West Hiigh Court Road, Shankar Nagar, Nagpur DRS under Scrutiny 16/10/2014
dear when is the company going to start its operations
ReplyDeleteIts long time since we heard from you in this regard, Dear Sir.
ReplyDelete