This company belongs to well known Dhoot’s group with wide spread interest in consumer goods,Oil ,Telecom and Power . Last year turnover of this well diversified company was whopping 15000 Crore for the year ended Dec’2010 which was for 15 months period. Based on last year Balance sheet,current Book value of the company is over Rs 300/-.Current market price of this share is Rs 170/- which is grossly under priced considering the expected EPS of Rs 25/- for the current year .
Eventhough Videocon Industries is present in diversified area’s like Oil,Telecom,Power and consumer Goods it’s current market value doesn’t reflect the true value of this company. According to me within couple years this company will split into 4 to 5 companies based on the lines of it’soperation . There will be a huge unlocking of value at that time , if you have the patience to hold on to this share for couple of years
