Mudar Patherya has stated that there is nothing in the numbers of Emami Infra to suggest a simmering volcano. But, remember the principal behind this company, ~394 crore in customer advances on its books likely to become revenues in FY17, an impending net worth-enhancing Zandu Realty merger (with a disproportionately lower increase in equity capital), asset-light pan-Indian project launches — and a market cap of only ~165 crore at a time when the illustrious parent is valued at ~23,500 crore. Opportunity.
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It is a matter of common sense that when a behemoth promotes a minnow, hefty gains will gush out from the minnow.
We saw this happening in Astec Lifesciences (Vijay Kedia’s favourite stock) where under the benign guidance of the blue-chip Godrej Industries, the shareholders are strutting about with bulging bank balances.
Another example is that of Arvind Infrastructure which was spun off by Arvind Ltd. While big-ticket shareholders bailed out in a hurry, Porinju Veliyath and Ashish Chugh smuggled into the stock, knowing from experience that a minnow like that has to shine sooner or later.
A third example is that Nirvikara Papers (now renamed as Balkrishna Papers) which was taken over by the blue-chip mid-cap Balkrishna Industries.
A fourth example is that of Emami Infrastructure.


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