TOP PICK FOR MONDAY AND THE WEEK

STANDARD INDUSTRIES LTD:

Listed at Bse and Nse, this Mafatlal group co is poised for brighter
days ahead as company will start reaping benefits of its big land bank
in Navi Mumbai.

SIL owns a big parcel of land 63 acres at prime location in Navi
Mumbai. This parcel of land is next to Corporate Headquarters of
Reliance group and ADAG Group and is touching the main road. In Navi
Mumbai (Near Vashi) this may be last piece of BIG parcel of land.
Prevailing market rates in this area are approx Rs 20 crores per acre
land although few kms away, CIDCO has auctioned plots (residential
which command higher rates) for as high as even 90 crores per acre.

Even if SIL land is valued @ 18 crore per acre, land value works out
to Rs 1130 crores. On equity of 32.17 crores, it works out to Rs 176
per share. However, due to tight liquidity in real estate sector,
these days, builders prefer to go for JV with land owners (instead of
lump sum payment to buy the land)

SIL is likely to sign very soon JV agreement for development of its 63
acre land for construction of IT Park as per following terms:

1.  SIL to get Rs 250 crore cash payment. THIS WORKS OUT TO Rs 39 PER SHARE

2.  To GET 6 LAC SQ FT SPACE IN PROPOSED IT PARK. Market value of 6
lac sq feet should be around 540 crores. THIS WORKS OUT TO Rs 84 PER
SHARE.

Thus, TOTAL CONSIDERATION OF THIS JV DEAL FOR SIL works out to roughly
 Rs 120+ per share

52 week high of SIL is Rs 31 and cmp is still lower than 52 week high price.

We feel that share price of SIL can go upto Rs 28-30 by March end  and
can be Rs 60-75 in 9-15 months. Buying strongly recommended