My initial thoughts on IMAGICAA. Invite thoughts of people for healthy discussion:
Ahmednagar (Maharashtra) based Malpani group appears to have reasonably good reputation. Post their acquisition last year, there appears to be multiple triggers which makes it as a turnaround story. Key points are:
- Company had accumulated losses of Rs 1800 cr before takeover
- Malpani group through a SPV has infused equity of Rs 415 cr at Rs 15.29/ share. Lenders also got shares at same price for Converting their Rs 75 cr debt to equity
- Further malpani have got redeemable pref shares convertible into equity for Rs 36.81/ share - On conversion this would result in further equity infusion of Rs 480 cr
- Debt of Rs 572 cr to lender to be restructured
- Malpani group has sold land worth Rs 106 cr which was there in company.
- NW now stands at Rs 235 cr which was completed eroded at the time of takeover
- FY 23 - CFO is positive Rs 117 cr
- Asset value is books is Rs 800 cr, so P/B is 2.5 leaving good upside for asset churn for such capital intensive business.
- They have recently taken Surat based theme park on O&M basis which would add ~Rs 8 Cr/pa. on bottom line of company and tone of their commentry appears that they would like to scale this in other locations as well.
I have position in stock at Rs 42/share. Views may be biased.