January 24, 2011

Cadbury - " Quit India "

Indian investors are World 's Best .
( China is more of hype  China is hidden behind a " bamboo curtain " whereas India is transparent . China does not hold census and thus all economic stats like Per Capita Income etc. are glorified speculations )

It is a matter of great pride for us Indians that East India Company , the joint stock company which once  ruled India and other parts of Asia and Africa , is now owned by an Indian .


If East India Company can be owned by Indians so can be Cadbury India Limited.

Indians can buy out Kraft Foods 's shares at the " FAIR " value being worked out by Cadbury itself.

If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate . The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. For example if Cadbury India Limited feels that Rs.2000 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders

However , we  sincerely wish that Cadbury India Limited offers its remaining loyal share holders " Kuchh Meetha " and in New Year 's " Shubh Arambh " withdraws this move












There are around 8,159 remaining non promoter shareholders who together own 2.42% stake in Cadbury India.





http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/small-equity-investor-how-to-safeguard-your-interests/articleshow/21742266.cms?curpg=3General Warning : Investment in Shares Can be Injurious to Your WEALTH

Disclosure : The Blog writer in his / family names has  holdings in this Company. So please make suitable " provisions " for any vested interest.

NB :All information given in good faith. Please recheck every point before taking any investment decision. No responsibility with this blog / blog writer.


Cadbury India - Excellent 2011 Results

For the year ended 31-12-2011

Sales 3488 Cr.
Gross Profit - 448 Cr.
Net Profit - 297 Cr.
EPS - Rs.95- 62 paise.
Dividend -Rs. 2 per share.

Share Capital - Rs.31 Cr.
Reserves- 991 Cr.


Cadbury has EPS of Rs. 97 . Going by the Peer P E. of 40 of   Nestle India the current Value of one share of Cadbury India is Rs. 4000 Per Share

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