Triveni Glass Ltd: New Trigger for further upgrade

In Rajmundry, presently only 1 plant is operational. 2nd plant is shut since years due to non-availability of gas for running the plant.
As informed earlier, co has important over from China to meet its energy requirements at lower cost ( compared to diesel).
Now, TGL is planning to start production in 2nd plant as well in March 2016 itself. Production capacity of 2nd plant is same as 1st plant. It means that with 2nd plant operating at optimum capacity, PRODUCTION OF TGL WILL DOUBLE i.e. 100%. We estimate that with both plants operational at optimum capacity, TGL can report Eps of Rs 13+.

Stock of TGL remained locked @ 19.90 in Dec 15 for 2 weeks. Otherwise,by now, stock would have been Rs 32-35. Despite stock price attaining new high and despite being in T Group, daily traded volumes have spurted and touched all-time high. It indicates that stock is being cornered by genuine big investors.

We reiterate that barring unforeseen circumstances and if markets do not crash and remain stable/bullish, share price of TGL should be in 3 digits in 2017.

A genuine turnaround stock available at extremely depressed price. STRONG BUY

UPDATE ON TRIVENI GLASS LTD

FINANCIAL RESULTS:

                     Q U A R T E R E N D E D    HALF-YEAR ENDED

                      30.09.2015     30.09.2014    30.09.2015

Sales               11.86            11.07            24.46

Net Profit           1.04             -0.07              2.17

Equity              12.62

TGL has reported sharply improved results for quarter ended Sept 2015 wherein its Net Profit is 1.04 crores as again LOSS of 7 lacs in corresponding quarter of previous year. Profitability in ensuing quarters should be much better due to installation of energy saving equipment imported from China.

MAJOR TRIGGER(UPDATE ON LAND SALE): Company has already RECEIVED advance payment of Rs 23.12 crores (refer Auditor review at Bse website) against sale of land at Allahabad. However, company has not yet made official announcement of same to Bse as approval of land sale is awaited from IDBI. But LAND SALE DEAL DONE. As per our information, total value of Land sale is Rs 92 crores which works out to Rs 73 PER

SHARE. Further, TGL may be able to get another Rs 30-35 crores from sale of its Plant/Equipment (TGL was manufacturing float glass in Allahabad plant). OTS with Canara Bank DONE. LETTER OF OTS FROM IDBI

EXPECTED ANYDAY.

TGL may have to shell out roughly Rs 50 crores against discharge of ENTIRE liabilities (OTS payment to IDBI, other small liabilities and statutory payments). Thus after sale of Plant/Machnery, TGL should have CASH of nearly Rs 70 crores. THIS CASH WORKS OUT TO Rs 55 PER SHARE.

Stock price can cross Rs 100 mark in 2016. Investors may , at present juncture, feel such steep price target as impractical. However, even more steep rise in our past recommendations has taken place. Before starting of this blog, MANGALAM DRUGS was recommended by us @ Rs 7 (yes Rs Seven only) in 2014. In just 18 months, M Drugs is quoting at Rs 380.