Digjam

 

One can identically compare this company with Hindustan Motors. Again Hindustan Motor is also a Birla Group Company that belongs to GP Birla, CK Birla Group and Digjam is SK Birla Group Company. I see good value in the company with tangible and intangible assets held by the company, in fact the debts in the books of the company is not much, it is about Rs 200-250 crore. And they have been trying to sell some of their idle assets and realise money.

If you see the present marketcap of the company is close to Rs 70 crore and even if you include the debt their EV is not more than Rs 250-300 crore. In fact there is no call or details available on what assets are held by the company, but they have sizeable assets in parts of Gujarat because it is Gujarat Based Company and they have been trying to do that.

Apart from that, the huge good brand value, the kind of rerating the textile sector is seeing and especially the woolen sector, we have seen that interest coming-in in Raymond's etc. So, again very good brand, very good business model, realisation of the idle assets, so, even here at 11-12, I don't think the stock is rightly valued. This has the potential to move to Rs 15, provided some initiative must come from the management from sale of assets, but looks interesting from here on.