Earlier it might have been a very well-to-do industrial capital goods company but soon it reinvented itself and decided to us its considerable land bank pretty well. That has paid off and today its main line of business of Exhibition and Convention centre and IT park. This is known as Bombay Exhibition Centre, located on some 11 acres of land, one of the largest such centers in the private sector in India. 75% of its income comes from this center as rental income and almost the entire bottomline. In Q4FY14, of the net revenue of Rs.60 crore, Rs.45 crore came from this center, with an EBIT of 60% though this has slipped from 64% in Q4FY14. The company net sales rose 22% (YoY) yet net profit came in very flat at Rs.24 crore, almost the same as in Q4FY13. Higher depreciation and higher other expenses pushed up the operating costs and so did the 33% hike in tax outgo.

The biggest attraction in this stock is its huge land bank. It owns totally around 70 acres of land of which the IT Park and Exhibition center is located on 11 acres only. If the company decides to sell the rest, the kind of valuations it will get for its prime location would be tremendous. The plant of Borosil stood next to its land, which some time ago was sold for Rs.830 crore, for 18 acres.

Its rental income itself is very good and margins as we can see, even in downturn time is pretty robust. Its debt free and cash as at 31^st March 2014 stands at Rs.4 crore, up from Rs.2 crore in FY13. Seasonally, H2 is usually the best time for the company as majority exhibitions are held after monsoon.