Rakesh Jhunjhunwala‘s, investment firm RARE Enterprise, bought 1,00,000 shares of Visaka Industries at Rs. 151.75 per share. Rakesh Jhujhunwala’s total investment in Visaka Industries is Rs. 1,51,75,000.
The transaction happened by way of bulk deal on 22nd April 2010. The snapshot of the bulk deal is given below.
Visaka Industries is one of the largest producer of corrugated cement fibres and has 7 factories spread across the country with a total capacity of 6,50,000 tonnes. The company reported Rs. 653 crores of revenue and Rs. 45 crores of profit in fiscal year 2011. The EPS for the year was Rs. 28.38
At the current market price of Rs. 102 as on 10th June 2011, the stock is trading at a PE multiple of just 3.6 times. The company has paid total dividend of Rs.5 in the fiscal year 2011 which gives an yield of approximately 5% at the current market price.
However the company is of very small size in terms of market value. At the CMP of 102 the market cap of the company is just Rs. 162 crores. But low valuation, high yield and jhunjhunwala's interest would provide cushion to the stock on the downside.