GILLANDERS ARBUTHNOT -- growth cum value play

GILLANDERS ARBUTHNOT   

cmp 168, market cap 242    crores.

This company is a conglomerate of various businesses which consists of

Tea,  Yarns, Construction, Marketing, Waldies, Property, Power Plant.

CONSTRUCTION:

Modern India Construction Co. (MICCO), a Unit of Gillanders Arbuthnot & Co. Limited (GACL) , Kolkata, belongs to the KOTHARI GROUP.   MICCO has expanded in the last 18 years to become one of the leading engineering and turnkey contracting company in India. MICCO's expertise incorporates absorption of Basic Design of various Plants from the World Leaders of the same and translation of the design into a properly detailed engineered plant.

FABRICATION DIVISION  at Sodepur makes Tanks, Pressure Vessels, Chimneys, Bunkers etc., -Heat Exchangers, -Building & Technological Structures, -Electric Arc Furnaces and Walking Beam Furnaces, -Power Winches, -HT & LT motor frames, -Ship Bulkhead modules.

TURNKEY/EPC DIVISION  is involved with Blast Furnaces,  Reheating Furnace, Desulphurisation of Hot Metal, Coke Oven Battery,  Skin Pass Mill, Cold Rolling Mills, Continuous Galvanising Lines, Gasholders, Water Cooling Systems in BF & LD, Material Handling Plants, Structural Steelwork, Piping.

MICCO has an well-equipped Design /  Drawing office at Kolkata, equipped with Latest AUTO-CAD manned by qualified Engineers and Draughtsman. MICCO is doing Mechanical, Piping, Structural, Electrical, Instrumentation, Automation drawings for Consultants and Technology Partners like DCL, EIL, TPE (Russia), MECON, DASTUR CO., CLAYTON WALKER (UK), IHI (Japan), KUETTNER (Germany), BRICMONT (USA).

TEA DIVISION comprises of tea gardens measuring a total grant area of 5874 hectares and has various tea estates in Betjan, Tengpani, Jutlibari in Assam and Gairkhata in Doars and Taipoo in Bagdogra.

WALDIES It is one of the largest manufacturers of Lead Oxides and Stabilisers for PVC Industry. Its factory is located on the bank of River Ganges around 14 Kms from Kolkata. It is the most respected name in the industry and is well known for its high quality products 

YARN DIVISION produce varieties Yarn for Domestic and Exports market. They  have two spinning mills known as GIS Cotton Mill at Champadany, near Kolkata, West Bengal, India and another one as North India Spinning Mill at Ahmedgarh, near Ludhiana, Punjab, India.

MARKETING DIVISION  The company is active in marketing various products connected particularly with Building Industry mainly in Southern and Western regions of India. They market various products like Supercem—paint related brands,  CICO – water proofing compound, Tapecrite,  and various other numerous brands. They market 3M products in Tamilnadu.

PROPERTY DIVISION owns and rents Gillanders house at Netaji Road in Calcutta  and POWER DIVISON has a 6.5 MW co-generation power plant at Akbarpur in Dist Sangrur Punjab.

FINANCIALS:

CMP  AROUND 168, SHARE CAPITAL AROUND 16.23 CRORES,  MARKET CAP AROUND 242 CRORES

YEAR	04	05	06	07	08	09	10	Q1FY11
SALES	51	240	258	269	408	487	613	158
NP	-1.64	2.81	4.86	5.93	14.6	16.2	25.3	11.3

Before jumping the gun about FY 11, one needs to consider that they report losses during March quarter due to lacklustre performance of tea division. But overall the trend in sales and profits seems to indicate good growth performance.

DIVIDEND declared for FY 10 is Rs 5.

DEBT FOR FY 09 WAS AROUND 183 CRORES.

PROMOTER HOLDING IS AROUND 68.62%, NO PLEDGING.

STOCK IS AVAILABLE CURRENTLY CUM BONUS WITH ONE SHARE FOR EVERY TWO SHARES HELD.

TECHNICALS:

Here there are two different interesting patterns which I have posted on theequitydesk.

First is an inverted head and shoulders pattern on long term charts where breakout levels are around 180-190, and a break above these levels should target much higher levels.

LINK--http://www.theequitydesk.com/forum/forum_posts.asp?TID=2860

Secondly on the daily charts it has formed a bullish cup and handle pattern, again breakout levels of this are around 180-185.  Link  http://www.theequitydesk.com/forum/forum_posts.asp?TID=339

Gillanders seems to be a combination of deep value cum growth play.

ACKNOWLEDGEMENT:  THIS STOCK WAS  BROUGHT TO MY NOTICE BY A FRIEND VIVEK SUKHANI. THANKS VIVEK SUKHANI.

DISCL:  I OWN THE STOCK.