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Jyothy Labs gives a humdinger !


posted by amittal007 on Thursday, March 17th, 2011


What's happened to Jyothy Labs!!! A Capital Markets anecdotal episodic recovery swan song

The firm just got a great pick in Henkel which has a handsome positive brand value in Henkel and more at a throwaway 35 per share. So why is the stock tanking 10% from 240 where it opened. The company is unlikely to face any challenges in QIP placements for the $13 million purchase worth a paltry INR600 million in cost but probably worth $100 millions conservatively in brand and net worth accretions 

The stake is below the 15% mark requiring no open offers for the next 20% or change in management control, whence in a strange tradition like ITC and RELIANCE before, the acquirer is trading down wildly penalized by the market for buying more business.

posted by amittal007 on Thursday, March 17th, 2011


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