Posting the original news update again:

Back Gremach in talks to sell stake in Mozambique arm
Amit Mitra
Mumbai, Oct. 1 Gremach Infrastructure, which has struck coal in Mozambique, is in advanced stage of talks with an Indian steel producer and three foreign mining and steel companies for 5 to 10 per cent equity sale in its Mozambique mining arm, Osho Gremach.
Osho Gremach, which owns 75 per cent stake in the Mozambique coal mines in Moatize region, plans to start coal production from the mines by April 2009.
Gremach expects to raise $50 million through equity dilution, which will be utilised to buy mining equipment and start production at the Mozambique facility.
Without naming the Indian steel maker that is in the race to pick up equity in the mining company, Mr Rishi Raj Agarwal, Vice-Chairman and Managing Director of Gremach, only said it was a “big steel maker in the private sector.”
Indian steel companies such as Tata Steel, Jindal Steel and the Mittals have been looking for buying coal and iron ore mines outside India to meet their raw material security needs. Tata Steel recently acquired 35 per cent stake in Australian firm Riversdale Mining coal project in Mozambique for about $ 85 million. India is estimated to be importing nearly 95 per cent of its coking coal requirement.
Earlier, Gremach was planning a bigger equity dilution to raise about $100 million, but as the Mozambique mine turned out to be an open cast one, it decided to whittle down the quantum of dilution. “We expect to complete the process of equity dilution in the next three months,” Mr Agarwal told Business Line.
Drilling operations
The company was granted 11 prospecting licences in Mozambique last year, covering over 13,500 hectares. Out of this, it undertook drilling operations in two licences, where they have stuck coking coal in depths of barely 1.5 mts. This region falls in Karoo basin that is recognised as a prime coal bearing area in Africa—the basin starts from South Africa and travels up to Kenya, covering parts of Mozambique, Zimbabwe, Swaziland, Malawi and Tanzania.
“Our licences are very close to the existing Companhia Vale Do Rio Doce mines, where hard prime coking coal has already been found. We estimate the two licences to hold a reserve of 200 million tonnes of coal. The international price of coal is at present ruling at about $300 a tonne,” Mr Agarwal said.
Companhia Vale, the world’s largest iron ore producer, is investing $2 billion in Mozambique that is expected to develop into the Southern Hemisphere’s biggest mine for the black gold.
After it starts coal mining operations, Gremach will be looking at both the Indian and global markets. “After the Mozambique strike, we will be looking out for both coal and iron ore mines in Africa, CIS countries and Latin America,” Mr Agarwal said.
The group already has a company in Guinea, which has a string of licences for iron ore blocks, bauxite, lead and uranium, measuring a total of about 8,000 sq km. Gremach clocked an income of Rs 235.62 crore and net profit of Rs 37.17 crore last fiscal.

source: Hindu Business line

-manish
...

somebody has deleted my original news update. How do I know who has deleted it?

-manish...

Same name dude!

I usually don`t encourage discussions on my personal id as I get swamped by lots of queries from my members. You can see me here, at my blog or googlegroup.

-manish...

Dear Excel47,

Don`t ask me about short term price in the short term. When the house is burning in US, the FIIs have to press sales however good/bad the stock is - in any part of the world to douse the fire. Even Indian MFs have started paring their holdings in smallcap/midcap stocks, little strange behavior by them - for the short term focus.

Now lets see the valuation. At the FY08 EPS of 24, the share is trading at P/E of ONLY 2.5. Even Q1 FY09 EPS was around 8. So, you are looking at very cheap valuations.

Lets see the business model:

1. Infra equipment rental company (only other competitor is Quippo Infra - SREI`s subsidiary).
2. Metal SEZ - a new business model (got approval for the SEZ, though yet to prove the model - again first of its kind)
3. Mineral and Mining company - Asset heavy - long term sustainability of the company`s prospect.

Whatever, if you are holding this stock then don`t sell at dirt cheap price - whether you are believer in the mgmt or not. If you are a believer in the mgmt, then slowing keep adding this.

Lastly - the risk and reward is yours.

-manish

...

Thanks Sanjeev.

I know its tough, but thats what will make a person better. Always track the company... if nothing else in the market, it will make one more wiser.

-manish...

Gremach in talks to sell stake in Mozambique arm
Amit Mitra
Mumbai, Oct. 1 Gremach Infrastructure, which has struck coal in Mozambique, is in advanced stage of talks with an Indian steel producer and three foreign mining and steel companies for 5 to 10 per cent equity sale in its Mozambique mining arm, Osho Gremach.
Osho Gremach, which owns 75 per cent stake in the Mozambique coal mines in Moatize region, plans to start coal production from the mines by April 2009.
Gremach expects to raise $50 million through equity dilution, which will be utilised to buy mining equipment and start production at the Mozambique facility.
Without naming the Indian steel maker that is in the race to pick up equity in the mining company, Mr Rishi Raj Agarwal, Vice-Chairman and Managing Director of Gremach, only said it was a “big steel maker in the private sector.”
Indian steel companies such as Tata Steel, Jindal Steel and the Mittals have been looking for buying coal and iron ore mines outside India to meet their raw material security needs. Tata Steel recently acquired 35 per cent stake in Australian firm Riversdale Mining coal project in Mozambique for about $ 85 million. India is estimated to be importing nearly 95 per cent of its coking coal requirement.
Earlier, Gremach was planning a bigger equity dilution to raise about $100 million, but as the Mozambique mine turned out to be an open cast one, it decided to whittle down the quantum of dilution. “We expect to complete the process of equity dilution in the next three months,” Mr Agarwal told Business Line.
Drilling operations
The company was granted 11 prospecting licences in Mozambique last year, covering over 13,500 hectares. Out of this, it undertook drilling operations in two licences, where they have stuck coking coal in depths of barely 1.5 mts. This region falls in Karoo basin that is recognised as a prime coal bearing area in Africa—the basin starts from South Africa and travels up to Kenya, covering parts of Mozambique, Zimbabwe, Swaziland, Malawi and Tanzania.
“Our licences are very close to the existing Companhia Vale Do Rio Doce mines, where hard prime coking coal has already been found. We estimate the two licences to hold a reserve of 200 million tonnes of coal. The international price of coal is at present ruling at about $300 a tonne,” Mr Agarwal said.
Companhia Vale, the world’s largest iron ore producer, is investing $2 billion in Mozambique that is expected to develop into the Southern Hemisphere’s biggest mine for the black gold.
After it starts coal mining operations, Gremach will be looking at both the Indian and global markets. “After the Mozambique strike, we will be looking out for both coal and iron ore mines in Africa, CIS countries and Latin America,” Mr Agarwal said.
The group already has a company in Guinea, which has a string of licences for iron ore blocks, bauxite, lead and uranium, measuring a total of about 8,000 sq km. Gremach clocked an income of Rs 235.62 crore and net profit of Rs 37.17 crore last fiscal.

source: BL...

Based on TTM earnings of 3.6, its trading at P/E of 23 which is not cheap based on today's market. However, the FMCG pack itself is held strong. Yes, its showing leadership in its business as well as in markets.

regards,
manish...

bhojas, I liked ur style of replying especially ---the risk and reward is yours and also ....slowly keep adding this. The valuations are indeed cheap even though it was recommended at 88 onwards but the only areas of concern still remains the market behaviour and the fact that this is one of the favourite stock of operators plus the managements tendency to make announcement after announcement. The only thing concrete so far towards income was equipment leasing which the management has said it will cut down. Rig no further progress and mining will not contribute significantly for another year. Will buy in small lots at appropriate time....

Posting the original news update again: Back Gremach in talks to sell stake in Mozambique arm Amit Mitra Mumbai, Oct. 1 Gremach Infrastructure, which has struck coal in Mozambique, is in advanced stage of talks with an Indian steel producer and three foreign mining and steel companies for 5 to 10 per cent equity sale in its Mozambique mining arm, Osho Gremach. Osho Gremach, which owns 75 per cent stake in the Mozambique coal mines in Moatize region, plans to start coal production from the mines by April 2009. Gremach expects to raise $50 million through equity dilution, which will be utilised to buy mining equipment and start production at the Mozambique facility. Without naming the Indian steel maker that is in the race to pick up equity in the mining company, Mr Rishi Raj Agarwal, Vice-Chairman and Managing Director of Gremach, only said it was a “big steel maker in the private sector.” Indian steel companies such as Tata Steel, Jindal Steel and the Mittals have been looking for buying coal and iron ore mines outside India to meet their raw material security needs. Tata Steel recently acquired 35 per cent stake in Australian firm Riversdale Mining coal project in Mozambique for about $ 85 million. India is estimated to be importing nearly 95 per cent of its coking coal requirement. Earlier, Gremach was planning a bigger equity dilution to raise about $100 million, but as the Mozambique mine turned out to be an open cast one, it decided to whittle down the quantum of dilution. “We expect to complete the process of equity dilution in the next three months,” Mr Agarwal told Business Line. Drilling operations The company was granted 11 prospecting licences in Mozambique last year, covering over 13,500 hectares. Out of this, it undertook drilling operations in two licences, where they have stuck coking coal in depths of barely 1.5 mts. This region falls in Karoo basin that is recognised as a prime coal bearing area in Africa—the basin starts from South Africa and travels up to Kenya, covering parts of Mozambique, Zimbabwe, Swaziland, Malawi and Tanzania. “Our licences are very close to the existing Companhia Vale Do Rio Doce mines, where hard prime coking coal has already been found. We estimate the two licences to hold a reserve of 200 million tonnes of coal. The international price of coal is at present ruling at about $300 a tonne,” Mr Agarwal said. Companhia Vale, the world’s largest iron ore producer, is investing $2 billion in Mozambique that is expected to develop into the Southern Hemisphere’s biggest mine for the black gold. After it starts coal mining operations, Gremach will be looking at both the Indian and global markets. “After the Mozambique strike, we will be looking out for both coal and iron ore mines in Africa, CIS countries and Latin America,” Mr Agarwal said. The group already has a company in Guinea, which has a string of licences for iron ore blocks, bauxite, lead and uranium, measuring a total of about 8,000 sq km. Gremach clocked an income of Rs 235.62 crore and net profit of Rs 37.17 crore last fiscal. source: Hindu Business line -manish ...

Hey Manish thanx for replying and my name is Manish, can you share with me your emial ID...

What price do you expect after this news in short run as well in long run. Is the management trustworthy and one can hold share for long term, since all mutual funds have exited the stock and their holding is Zero....

Manish, I like your comments. We usually see the stock price than concentrate on the micros of the company. But it is very tough for a investor to keep his focus when he sees stock price falling. RJ has got it in his portfolio and he added some more....

One of my friends is a director in Ion Exc. and he has a substantial holding in this share. ...

U r right. Valuation wise it is not cheap under the present market conditions. However,just look at HUL, despite so much weakness in the market, it continues to be strong. Similarly about ITC, reasonably strong. So possibly it may get re rated at some point of time. Thanks for yr views....