Share prices of HM are rising nowadays reason,The stock market is very optimistic about Hindustan motors but sadly
not for their car selling ability but more for their real estate ventures,
“Firstly Hindustan Motors people have been taking the fundamental and operational the working call of the company, infact in my view that is a wrong call because everybody knows in the automobiles
they are not making money and they are not going to make money by making Lancer and Ambassador. But if you really take a call on the assets which the company is owning first and foremost they own 49% in AVTECH Ltd. which was the division of Hindustan Motors which has been hived off making engines and all that, 30% is held by the Actis private equity investors and sooner or later even this 49% stake will get divested mainly ultimately to Actis or to a company which will be taking over the entire unit and valuation in that situation should not be less than Rs 800-1000 crore for that AVTEC Ltd. If I take a 49% valuation that alone gives me a valuation of about Rs 400-500 crore this is definitely not a strategic or a promoter contribution kind of investments which can get realized over a period of time.”
The article goes on showing the amount of money they can make with their real estate deals.
Source:
Moneycontrol India :: News :: Hindustan Motors can touch three digits: Tulsian :: :: Stocks Views :: Hindustan Motors,Investment Advisor SP Tulsian
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In fact Hm too seems more interested in real estate business nowadays,
To commercially develop 314 acres of idle land at Uttarpara into an integrated IT township and an auto park.
Source:
Hindustan Motors Seals Deal With Shriram