Empire industries is 125 year old company,started in 1900. The company is majorly into realty but also have other business. Not much details are available since company do not conduct earning call/Investor presentation. AR too have little information.
- Vitrium Glass - Amber Glass bottles for the pharmaceutical industry.
- Empire Commercial Properties - Rental (Vikhroli IT park : Empire Plaza)
- Empire Business Centre - Rental (Lower Parel building & land)
- Empire Centrum - Ambarnath (Property development partly completed)
- Empire Foods - Imported frozen sea food
- Empire Machine Tools Metal Cutting and Allied Technology(MCAT)
- Empire Industrial Equipment
- Empire Vending Solutions (Grabbit+) - Automated vending service provider
FY25 AR states that Profit contributions as follows :
- Vitrium = 21.49 cr
- Overall rental profit = 52.35 cr
- Property development (must be Centrum) = -13.59 cr
- Other business = -7.84 cr
This means that rental profit of 52 cr (from an income of 84 cr) is major contributor. I dont understand why Centrum Ambernath is consistently making loss in spite of being close to 8 yrs of property development.
The Empire Business Centre (Lower Parel) :
TEBC has 3.36L sq.ft. of land in Lower Parel which is not effective used and hence the revenue generated from this building is much less than what it is capable of generating. This land itself is worth 1300 cr.
As one can see in the map, lot of land is unutilized and also there is just 1 floor. FSI is too small.
Empire Plaza (Vikhroli):
Empire plaza is a 7 story building (A & B) located in Vikhroli. It has 4.2 lakh sq.ft of build up area which is worth 1000 cr.
Vitrium Glass (Vikhroli):
Vitium Glass factory is located in Vikhroli, measuring 1.2 lakh sq.ft., worth 240 cr. Though land is being utilized, its not mandatory to use this land in the middle of the city as a factory. Hence land can be valued independently if valuation multiple of Vitrium business is lowered to 8x profit.
Valuation (Sum of parts) :
At CMP, mkt cap is 540 cr whereas intrinsic value is 2800 cr and even discounting 50% real estate, its worth 1500 cr.
Conservatively, Empire Centrum - Ambernath property is not added in the above valuation as i dont know how to value since it is making loss as per annual report. This property, located very close to Chikhloli Rly station, is quite big - 35 acre land, commercial & residential buildings, effective utilization of FSI (8 towers of 12 floors - residential).
I approximately measured based on the information of 35 acre (15.24 lakh sq.ft.) land but need to be verified.
Actual development is in the link which is 4 yr old.https://www.youtube.com/watch?v=QB4LnrfFfaU
Finished project will look like this.
Promoters :
Satish Chandra Malhotra is the chairman and head of the promoter family. Overall promoter holds 72.55%. Now his sons Dileep & Ranjit are major shareholders and part of the top management. LIC holds 6% (reduced from 13% in 2017).
Empire industries is a deep value stock but pays dividend of 2.8% at current CMP. Since there is no earning call or any other informations in the company reports, can forum members add more inputs…
Disclosure : 6.3% weightage @ 970 in my portfolio