Hidden Gems - BOMBAY DYEING

Bombay Dyeing, like its contemporaries in the textile industry, suffered losses in the past two financial years. The Wadia group company, however, reported a net profit of 2.71 crore for the quarter ended December 2009. An improvement in the operating profits since the past four quarters have appeared from the company's real estate business, offsetting the negative effects of struggling textile/polyester business. For the year ended December 2009 while the real estate and properties collectively contributed 34% to revenue, PBIT from these segments were as high as 134% of total PBIT. It is, however, difficult to compare the valuation of the company to that of any real estate company or its peers, like Century Textile, which have a similar real estate segment since the latter's business is considerably influenced by its activities in cement business.