Here is a small cap which is worth a small bet. The potential upside is huge and downside - well your money could get locked in forever without much return .
Tainwala chemicals is a listed stock which owns 8.9 to 10% ( not sure of exact) of Samsonite South Asia Pvt. Ltd.
Market cap of Tainwala Chemicals is Rs.25 Crores. Their main business now is plastic sheets and investments (??)
Sales of Samsonite South Asia - 2016 Expected - Rs.1000 Crores+ , 2015. If anyone can locate - kindly share. I had read some interview that it would be near 1000 Crores in 2015.
My estimate is that Samsonite South Asia is worth at least 4000 Crores (EBIT of Rs.100 Crores) , growing at a healthy 20% + for last few years and likely to grow at a faster rate in the future - taking share from VIP and growing the luggage category.
10% of that should be worth ~ Rs.250 Crores with a holding company discount.
Value unlocking in Tainwala can happen if Samsonite South Asia starts paying dividends (once they get out of the fast growth stage) and much larger value unlocking can happen if there is an IPO of Samsonite South Asia.
Other useful information - Ramesh Tainwala founder of Tainwala chemicals is the global CEO of Samsonite worldwide, so he has a reputation at stake.
Check out an old interview with the management.
Tried speaking to the investor relations - but they just say no plan for IPO at the moment. I wonder why?
Invite fellow boarders to get more information on this topic.
Disclosure - built a small position with money that I can forget I ever had