Some Interesting Details about Jai Corp !

Jai Corp – SOTP valuation arriving at a fair value of Rs707. Businesses / Investments Value Valuation Parameter (Rs in bn) Value of investment in NMSEZ NPV discounted at 15% 37.00Value of investment in MSEZ NPV discounted at 15% 59.34Value of investment in Rewas SEZ NPV discounted at 15% 13.92 Value of investment in Rewas Port NPV discounted at 15% 14.19Value of investment in Power companies NPV discounted at 14% 1.41125.86 Less: Holding company discount @ 15% 18.88106.98 Value of investment in UIVCF Discounted value of fees & profits 4.84Base Business 5x FY09E EV/EBITDA 2.66Investments* 20% discount to market value 12.37Total Value 126.85Less: Net Debt/(cash) 0.68Net Value of Jai Corp 126.17Number of shares (in millions) 178.5
Value per share - Rs 707
Source: JM Financial. (*Investments are valued as on 28th August, 2008)
Valuing the SEZ part can be the most complex,but first on simpler terms and comparing similar businesses like Mundra which is valued at 50K cr so Rewas can easily be valued at 100K cr seeing it size and magnitude, with 10% Jai's stake it alone gives a value of 10Kcr (more than its present networth) We need to understand ports to be correct here.China's Shenzhen did a net export of 75 Billion Dollars last year (half of what India does), When the Twin Sez, NMSEZ & MSEZ are up and running , can we presume it could generate a turnover of 25 Billion or 100k cr, we have to undestand the SEZ dynamics here.Real Estate, how much Jai holds directly , 2000 acre or 10000 acre(under its subsidaries), what is the quality of land it holds that impacts the valuation very much, a 100 acre land in Pune can be valued at 100cr or 1000cr depending upon location, UIOF and UIVCL corpus of more than 1 billion dollars, Real estate ventures, Gas distribution plans (could suprise the valuation front), Power plants,etc could give a valuation of about 20K cr.All above for the known values, but what about the unknown Networth (Anand Jain's 4 Billion Dollar, does some part comes into future unlocking of value for JaiCorp) In a Bullish Market scenario It is seen the market may value Jaicorp to have a networth of 40K cr by June 2009 that can give it a price of more than 2000 and at 100K cr by Dec 2010 - a magic target.
Still analyzing..................
One very important news is that UIOF (Urban Infrastructure Opportunities Fund )had a rights issue for the shareholders and corpus increased by 50 % from 2200 crores to 3260 crores . it is believed that rights was done about 2 months back and was fully subscribed. So that is good news....
Only Patience will pay in a Long Run.........