I got a bit late in identifying the changes recently and again entered at 80 Rs levels post BSE announcements in Dec 2014, which I failed to notice and another on 6th of Feb, bought only after 10th Feb. Main proposition of the footwear company that started same time with same financial muscle as Relaxo, i.e. little to nothing, (and is 50 times smaller today than Relaxo) is a mall project. This project was held in suspended animation due to some conflicts, my guess and real estate slowdown.
The six floor mall project would have market value anywhere between 400 – 600 Crores. Even if Sarup gets 25% of the net constructed value, the company will derive 4 times its market cap.
Based on sale value of commercial shops in Model Town (which is one of the posh areas) part of Jalandhar, minimum price is 10,000 Rs/Sq. ft. and goes as high as 20,000 Rs/Sq.ft Constructed area is 3-4 Acres. Post construction 4-6 floors will be available for sale/letting. Based on worst case scenario as explained, company should either derive annuity income or get one off lump sum. Footwear business come free.