Update on Almondz Capital (511589)

With reference to our last post on Almondz Capital (BSE-511589), the stock today achieved our first target price of Rs.60. The run-up was a bit fast.

At today’s market price of Rs.60, the market cap of the company is Rs.60 crs. Since Dec 14, the share price of Almondz Global has also increased on substantial volumes to Rs.110 from Rs.91. So, the value of shares hold by ACMSL is now Rs.93.5 crs which converts into a NAV of Rs.93.5 per share. Even at today’s price, the stock is trading at a 35% discount.

We believe that the market is slowly realizing the value of Almondz Global. As the company will start showing better results, the visibility for the stock should improve. We am expecting the re-rating to happen as soon as the company will receive the high court’s approval to merge its retail brokerage business.