2014 July

NESCO: What an Exhibition!

Posted by | Stocks | 6 Comments

I first looked at Nesco around 18 months ago when it was ~700 and had love at first sight. They have an annuity business(rentals); the company owns and runs Bombay Exhibition Center, Commercial towers built on adjacent land and some pretty valuable surplus land around it (overall ~70 acres) in Goregaon, Mumbai. If one does the math, the market value of these assets put together is north of INR 4,000 Cr. The underlying business itself is fantastic with a sustainable moat. To understand the business quality and potential, all one needs to read is Prof. Sanjay Bakshi’s note on NESCO.
In the recent rally the stock has run up to 1100. What should you do now? Should you hold? or if one doesn’t have a position yet, can one enter now?
I

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