TCI Industries - True Valuations

TCI Industries, of TCI Group is listed on BSE, being a thinly traded stock, with total issued equity shares of 8.97 lakh shares, of Rs. 10 only. Of this, 75% is held by the Promoters, while 14% is held by 1,737 retail shareholders, with an average holding of 74 shares by each investor. Balance 11%, being 96,695 shares are held by HNIs, of which, 3 Bodies Corporates are holding 59,429 shares.

Buy call on the stock was given by our Editor at Rs. 30 on or about 1-4-2003, on CNBC TV then, while share thereafter, rose to Rs. 8,100 on 5-11-07, in about 4 years and 8 months, to rise by 270 times, in spite of stock having 2% UC Band for all these years. We have been ahead of identifying such MB stocks, for the years.

TCI Industries, owns 11 acres of land at Colaba, Mumbai, named Mukesh Mills, which is at stone throw away from Gateway of India and Taj Mahal Hotel in Mumbai. Development clearance of this property is stalled by BMC, for obvious reasons. Company in its Directors Report of 2021, has stated about this property as under-

Company's Property at Colaba – Mumbai
The SLP filed by the Company in the Hon'ble Supreme Court of India, challenging the order of the Bombay High Court in the matter of refusal by Municipal Corporation of Greater Mumbai to the plans submitted by the company on the main ground of objection raised by Indian Navy, was listed during the last quarter of the year for final hearing before the Supreme Court. However, the matter did not reach for hearing. It is expected that the Company's SLP may be listed again in the current year for final hearing.

No property dispute in City of Mumbai, has remained unresolved, while this will also get settled, whether in 1 year or 10 years, difficult to predict. 11 Acre plot of Land will give a right to develop about 11 lakh sq. ft., if entire plot is cleared for development. Company has less than 9 lakh issued equity shares, which entitles a theoretical right of 1.25 sq. ft. of Land (FSI) for 1 equity share held. Prevailing land rate in the area is at over Rs. 50,000 per sq. feet. Share is now ruling at Rs. 1,065 with M cap of just Rs. 96 cr.

This is definitely not a BUY Call, but indicating and educating many of the investors here, who maybe CAs MBAs and Investment Bankers, teaching them ways and art  of picking MBs.

Note by our Editor SP Tulsian -
Still holding shares of TCI Industries, bought at Rs. 30 in 2003 (now ruling at Rs. 1,110) with less than 1% of PF.
This gives message of ART OF INVESTING.

This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.