Oswal Chemicals & Fertilizers Limited: Buy

CMP: Rs.35.35

The company is presently known as Oswal Greentech Ltd (NSE Code: BINDALAGRO). At present, the company is operating in the business of Real Estate, Investment activities, Fertilizer and Trading in shares/ commodities/ Goods as separate Business Segments.

The sudden fall in the profitability was due to stoppage of work under the joint development agreement with M/s. Oswal Agro Mills Ltd. for the development of land at Chembur, Mumbai for residential and commercial complexes, as per the order of Hon’ble High Court of Mumbai. 

As the project at Chembur, Mumbai was shelved indefinitely till the decision on the petition of M/s. Oswal Agro Mills Ltd. before the Hon’ble Supreme Court of India is received. The company is informed that the hearing in the case by Hon’ble Supreme Court of India is completed and the judgment is expected soon. The company is seriously considering diversification in the field of power, energy and natural resources and is under discussion with experts of respective fields. The future outlook in the case of Real Estate looks encouraging.

Aruna Oswal of Oswal Chemicals and Fertilizers Ltd last month announced the launch of a health care project for rural women in and around Ludhiana. She said the programme would be conducted by a able team of the Mohan Dai Oswal Cancer Hospital. The family is already running educational institutions to provide education to the underprivileged sections of society. Chief minister Parkash Singh Badal asked Aruna to give a detailed project report so that the state government could join them in this venture. He also requested her to come up with more projects for the state.

Net profit of Oswal Green Tech declined 39.46% to R.10.05 crore in the quarter ended June 2014 as against Rs.16.60 crore during the previous quarter ended June 2013. Sales reported to Rs.0.92 crore in the quarter ended June 2014. There were no Sales reported during the previous quarter ended June 2013.

Oswal Green Tech is holding 14.17% stake in NDTV Ltd (Rs.109.80). The share price of NDTV Ltd hit 20% upper circuits today.  

Oswal Green Tech Ltd, the Delhi-based chemicals and fertilisers company, acquired 14.1% stake in television broadcasting major NDTV Ltd for about Rs.24 crore through open market transactions in 2011. Through bulk deal transactions on the National Stock Exchange, Oswal Green Tech purchased a total of 91,36,894 shares of NDTV at a price of Rs.26.64 a piece, which appreciated by more than 4 (four) times during the last few years. 

Oswal Greentech Limited mainly develops and promotes residential and commercial real estate properties in India. It is also involved in the trading of shares/commodities/goods; and investment activities. The company was formerly known as Oswal Chemicals & Fertilizers Limited and changed its name to Oswal Greentech Limited in November 2011. Oswal Greentech Limited was incorporated in 1981 and is based in New Delhi, India.