JINDAL POLY INVESTMENT AND FIN: *CMP Rs 85 Book Value Rs 647*


JPIFL, belonging to Jindal group, is engaged in business of Investment  and Finance.

 Investment co stocks normally trade at .25-.30 Book  Value. However  Jindal Poly Investment  is quoting just 0.13%XBook  Value. Book Value is Rs 647 but Cmp is just Rs 85.

INVESTMENTS:

 Name of Company                           Amount Rs/Cr Instrument

Jindal India PowerTech                     154.10cr                  Equity

Jindal India PowerTech                     372cr
 Preference Shares

Jindal Poly Film Investment                86.65cr                    Equity


COST OF TOTAL INVESTMENTS IS Rs 616 Crores.  Equity is 10.51 Crores. Thus, value of investments works out to Rs 586 PER SHARE.

VALUATIONS AND MAIN TRIGGER:

1. If JPIFL gets valuation of 0.30XBook Value. It translates in STOCK  PRICE OF Rs 190+

2.  Out of total investment, amount of Rs 526 crores is invested only  in JINDAL INDIA POWERTECH. Jindal India Powertech is setting up  1200 MW Power plant. It is reliable learnt that promoters are keen to sell Jindal India PowerTech. TALKS ARE ALREADY UNDERWAY.  Deal should be closed any time in FY17.

As per our estimates and information, JPIFL's sale of its investment  in Jindal India Powertech should fetch CASH of Rs 700 crores+.  It  means there is likelihood of JPIFL GETTING nearly Rs 700 PER SHARE AS  CASH IN ITS BOOK. Once it happens, stock price of Jindal Poly  Investment and Finance can cross Rs 250 (in 2017)