Delisting Opportunity – Expecting Promoters to buy out shares at much higher price – Katalyst Wealth

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Dear Sir,

We have been participating in the Special situation opportunities (SSOs) as these come with relatively lower risk and decent gains in a relatively shorter duration of 3-4 months. Have also benefited from this strategy with several Special Situation opportunities like Ineos Styrosolution delisting, Suven life-Suven Pharma demerger, Linde India delisting, Hexaware delisting, etc appreciating by 20-140% in a period of 2-11 months.

On 11th Jan’21 we released our New Special Situation stock report and we think you may find the logic behind the same interesting as there’s a reasonable probability of decent gains over the next 2-3 months.

Latest Special Situation Report (Jan’21)

The opportunity we are talking about has the following attributes:

  1. It’s a delisting based opportunity
  2. Market cap < 500 crore
  3. Fundamentally strong company with debt free balance sheet (on net basis) and some surplus cash reserves
  4. The stock is trading around 10-11 times pre-tax operating earnings
  5. After cleaning up the balance sheet in the last few years, the company has been trying to improve the profitability as well by pushing for exports and offering additional services and products to customers
  6. Downside risk is low as the base price (expected floor price) is only about 17% lower
  7. The highest level the stock has traded in the last 5 years is around 75% higher from the current levels. On the upside, taking cues from the past cases, 30-40% seems quite possible.

Overall, at around current price the risk-reward ratio is in favor of the shareholders and have therefore initiated the opportunity for Premium members.

For better understanding of the Special Situation Opportunities, you can read our Presentation on the case studies shared with the students of MDI, Gurgaon, a Premier Business School:

  • Special Situation Investing, 2020 – LINK

 

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New/Returning Member

You can access latest Stock ReportsSpecial situations and Model Sheet in Premium Memberships HERE

 

Best Regards,

Ekansh Mittal
Research Analyst 
Web: http://www.katalystwealth.com/
Ph: +91-727-5050062, Mob: +91-9818866676
Email: [email protected]

 

SEBI Research Analyst Registration No. INH100001690

Research Analyst Details

Name: Ekansh Mittal     Email Id: [email protected]    Ph: +91 727 5050062

Details of Associate: Not Applicable

Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690

The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision

A graph of daily closing prices of securities is available at www.bseindia.com (Choose a company from the list on the browser and select the “three years” period in the price chart

This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.

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The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.

We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.

Disclosure (SEBI RA Regulations)

Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, Investment in Suven Pharma

Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No

Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No

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Whether it or its associates have received any compensation from the subject company in the past twelve months – No

Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No

Whether the research analyst has served as an officer, director or employee of the subject company – No

Whether the research analyst or research entity has been engaged in market making activity for the subject company – No

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katalyst Wealth

katalyst Wealth

Founded by Ekansh Mittal (SEBI Registered Research Analyst), focused on small/mid cap stocks for own investments and stock reports for clients.
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