Binny Ltd - own property in the heart of Chennai at 1/10th the cost!


(Bheeshma Sanghani) #145

Its hard not to be taken in by this project however one must be cognizant of the risks. So far only 53 projects have been registered under TN RERA and the SPR Binny one is not one of them. You can track the registration at http://www.tnrera.in/reg_projects.php

Disc - invested

Best
Bheeshma


(Dhaliwal) #146

Thanks for keeping us updated. I will invest in this company in near future. I am also thinking that the stock has a potential. Keeping low volumes in mind, such stocks can give amazing returns in a short while.


(Bheeshma Sanghani) #148

Hi @Shobitha

As i understand from the filings, the company has asked for time until Nov to hold the agm. However, I agree the wait creates all sorts of doubts as its been a while and one must handle this risk at the portfolio level.

On a lighter note - the real estate sector has a bad habit of making customers wait for possession of property. Now they are making investors wait too. I guess leopards cant change their spots!

Best
Bheeshma
Disc- added recently


(anand) #149

Results for the March and June quarters to be announced on October 23rd.
http://www.bseindia.com/xml-data/corpfiling/AttachLive/bd06a787-a590-414c-896e-08b1cfa86b0a.pdf


(saitks99) #150

Any update when the results would be out today?


(anand) #151

Results: http://www.bseindia.com/xml-data/corpfiling/AttachLive/020cb794-b350-41b3-a803-cb400f870222.pdf
AGM on Nov 29th.
No words or numbers on the sales/booking advances of apartments/market of india.


(Bheeshma Sanghani) #152

One can get a rough handle on the expected valuation by looking at Mkt Cap to Net Worth of other realty companies. While not a perfect apple to apple comparison it could serve as a rough guideline.

image

Under the current circumstances - at worst, i think Binny is fairly valued and at best the market cap could be roughly twice its Net Worth.

From a technical point - The Binny chart is displaying a good harmony - retracing by 38.2% from its original move from 73 odd level to highs of 370 and also retracing by 50% from its handle low at 118 levels, furthermore retracing to 61.8% of its correction from 150 levels ( first correction after the handle break) and finding support at that 215 level. These are fib levels that are useful and help when the unknown outweighs the known as is the case with binny.

Best
Bheeshma
Disc - added


(sri krishna bhutra) #153

Hi @bheeshma
In the recent results, on page 6 it is mentioned under section “emphasis of matters” -
b. Note no.24.14 to the financial statements with regard to the advances to related party for purchase of land for which the members of company have not approved resolution. The company has called back the advamces and these advances for purchase of land are pending for recovery.

c. Note 24.15 to financial statements with regard to the advance to related party for purchase of wind mill. The company has cancelled the contract and recalled advance paid and this amount is pending for recovery.

Do you know what is the sum total of the above two recoveries?
I think it’s a good thing that they cancelled the two deals and the money might be used for dividends or investment in realty business rather than diversification. But for this the recovery of the advances should happen soon.

Any inputs you have?

Regards
Krishna


(Bheeshma Sanghani) #154

https://m.timesofindia.com/city/chennai/200-yr-old-binny-hq-a-heritage-building-now-history/articleshow/61027661.cms


(anand) #155

This building is owned by S V Global Mill (Bse Code: 535621) which is one of the 3 companies split from the original Binny.

I’m hoping that the building is being brought down to build something new. It’s a 2 acre parcel in Chennai.
SV Global mills also owns prime 25 acre property adjacent to the Bengaluru City Railway station, which is a key target of acquisition by the Karnataka State for Bengaluru Commuter rail station.
Discl: Invested in S V Global Mill (borrowing the tagline from @bheeshma I can say - own property in the heart of Bengaluru at a fraction of the cost :wink:)


(Jay Sanjay Badiyani) #156

sorry could not find SV global mills either on bse or on moneycontrol . Can you share the script code ?


(anand) #157

There’s a space between S and V as in S V Global Mill, which could have caused an issue for you.
Here’s the bse link http://www.bseindia.com/stock-share-price/s-v-global-mill-ltd/svglobal/535621/
Bse Code: 535621


(Hemant V Bhatia) #158

Binny Ltd will be shifted to Z group on 31st Oct 2017
http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20171023-38


(Bheeshma Sanghani) #159

(Dhaliwal) #160

This stock has potential to grow but I am getting little concerned about management. It seems like they don’t care much about investors or the exchanges (evident from moving in Z group).

They reported the results will massive delay and have not even updated on the status of their real estate project. Execution of real estate projects is really important. I know they have property which can be easily sold but we need to have more information from this company and I don’t think there will be any change in management attitude in near future.

Has someone directly contacted Company Secretary regarding the current issues and the stock being pushed to Z category?


(kdjolly) #161

I have gone thru the thread and I understand why you are still holding onto your shares. I think the story of S V Global mill is the same as @anandr pointed out. Can your give your two cents,:slightly_smiling_face:, on that company? Your views will be much heavier than 2 cents though.


(anand) #162

Though the question is not directed to me, my view is that SV Globlal does not have a clear plan yet (atleast not officially) in monetizing their land bank, though they have classified themselves as a real estate company in their AR and BSE. Bringing down their Armenian street building may be sign of things to come, but I’m still wary. Binny is far ahead in terms of monetizing IMO.

Discl: I have a much higher allocation to Binny (> 25 %) in my portfolio compared to SV Global (< 5%).


(Bheeshma Sanghani) #163

Hi @kdjolly

I dont have interest in S V Global. By and large, there needs to be a definite plan of monetizing the land.

These kind of investments are based on whether the joint venture will be able to secure the necessary approvals from the govt & financing to develop the land. For legacy parcels securing approvals is a long drawn out process and tests the patience of everyone.

In investing in these situations one needs to have some idea about the real estate market etc and some level of trust on the company. This is to be decided subjectively and based on channel checks etc which requires effort.

Developers have a general perception of being untrustworthy so if you invest in these situations you are going against the commonly held perception.

Best of Luck
Bheeshma
Disc-Holding


(kdjolly) #164

Thanks for prompt reply @anandr and @bheeshma. Today I was trying to buy Binny Ltd but was not able to, as the answer was: Buying in the scrip is currently not allowed. I use icicidirect. Why so?


(anand) #165

Info on the Yiwu market being referred to in the above article…

http://en.yiwugou.com/