Friday, October 2, 2009

MOUNT EVEREST MINARAL WATER:MARKET PRICE IT FOR GOODWILL OF TATA

Dear Mahesh, Tell us about investing in Mount Everest Mineral Regards ask by shri S. N. Kumar ji advocate
1. Mount Everest mineral water ltd is a food processing company.
2. face value of mount Everest mineral is rs 10
3. Promoter holding is 49.43 percent which is normal and institutional holding 18 percent also good this is a tata group company tata tea take 25.74 percent stake in this company in 2007 and current holding of tata tea is 40.11 percent.
4. book value of mount Everest mineral water is 20.9
5. This is a loss making company June 09quarter loss is -5.4 million.
6. Net sell of this company is only 22 million in last year.
7. mineral water sectors is not good because sell of home filter is increasing day by day and I think you know that if home filter or R.O. filter is available at affordable price then purchasing of mineral water is down.
8. But management of tata is strong and current price 63 is only for goodwill of tata if this loss making small selling company is not taking over by tata group then you see it as a penny stock.
9. I think it will take some year (4-5) to increase his sell and make a profit then it may be merge in tata tea.
10. So it is wise to invest tata tea instead of Mount Everest mineral water or you may read my article on madhur industries on this blog or you may take a long term holding in mount everest mineral near the price of 25 if come in next correction.
THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
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