Dec. 22, 2009

Golden Tobacco sparkles on property development plan

The announcement was made after trading hours on Monday, 21 December 2009.Meanwhile, the BSE Sensex was up 111.95 points, or 0.67%, to 16,713.15. 
On BSE, 25,720 shares were traded in the counter as against an average daily volume of 46,735 shares in the past one quarter.
The stock hit a high of Rs 114.80 and a low of Rs 110 so far during the day. The stock had hit a 52-week high of Rs 126.55 on 17 November 2009 and a 52-week low of Rs 36 on 9 March 2009.
The stock had underperformed the market over the past one month till 21 December 2009, falling 4.83% as compared to the Sensex's 2.47% decline. It outperformed the market in past one quarter, rising 9.45% as against 0.84% fall in the Sensex.
The small-cap cigarette maker has a current equity capital of Rs 17.60 crore. Face value per share is Rs 10.
The current price of Rs 110.75 discounts the company's Q2 September 2009 annualised EPS of Rs 0.27, by a PE multiple of 410.
The board also approved a proposal for development, or sale of properties at Andheri (Mumbai), Hyderabad and Guntur. The company will hold an extraordinary general meeting (EGM) on 18 January 2010 to take shareholders' approval.
On 24 September 2008, Golden Tobacco's board of directors had approved a demerger of realty business in into a separate company. Shareholders will get one equity share in the new company for each share held in the existing company.
Golden Tobacco's net profit slumped 92.70% to Rs 0.12 crore on 20% rise in net sales to Rs 29.99 crore in Q2 September 2009 over Q2 September 2008.
Golden Tobacco manufactures and markets cigarettes and processed tobacco. The company makes various categories of cigarettes, namely full flavor, lights, ultra lights, menthol, menthol lights and extra menthol lights.
Promoters have pledged 5.28 lakh shares representing 3% of the equity capital of the company. The total promoter shareholding in the company is 27.19% (as on 30 September 2009).