RAGHAV INDUSTRIES LTD.

Raghav Industries is not a BUY based on its financials or conventional valuation parameters.But it is a scrip to watch due to some other reasons .This company belongs to the Pawan Kumar Ruia group which owns other listed companies like Dunlop,Falcon Tyres..etc. There is nothing more to say about the present business of this company.This is almost like a shell company with negligible operations in trading of textile items.But ,it came to limelight recently when it bids for ailing  South Korean sports utility vehicle maker Ssangyong Motor Company.When we look into the history of P K Ruia group ,it is known that almost all companies currently under their fold like Jessop & Company,Falcon Tyres,Dunlop Tyres are came through inorganic route( acquisitions) .They have succeeded in acquiring ailing companies and make it turnaround in short period .Even if it failed in the bidding war to Mahindra and Mahindra (M& M), Mr Ruia clearly states that they have other global targets in automobile sector. It is not clear whether it will be through Raghav Industries ,but the chances are very high considering its previous effort and high promoter stake.Out of the 19 Crore equity, Promoter group holds about 45% and large share holders (share holders holding shares more than 1% ) holding about 49% .There is a big chance that these large share holders (three entities) are close associates of promoter itself , thus it makes a 95% interest in the company.If they struck a deal ,Raghav may be re-rated and may turn as a multi bagger. Considering the history of the group ,chances are very high for such a deal in future. Since it is based on many IF's ,Raghav is only for risk takers having patience and with a mentality to forget the investment at least for few more years.Currently it is quoting at Rs.59/-