India Outsourcing Services Share Discussion Threads

[hardie1960] 29/1/2008 19:44

Stuart,

what a load of rubbish - and you know it.

[stuart14] 29/1/2008 19:38

Great post TBF, couldn't agree more. Once the story starts getting around suspect this could attract a lot more than just your usual investors too. They are the only listed Indian Restuarant Co, and as such could attract a lot of indian family investors wanting a piece of the pie. I like this deal, and if they can start rolling it out across affluent middle England i think we could all be rewarded. Definitely holding on to mine

[the big fella] 29/1/2008 17:59

All

There has been much posted today so I thought I'd bring a little reasoned analysis to the table.

I have done a bit of digging and managed to find out some numbers. 2 of the three units performed really well doing over 250k per unit. The other unit went from losing 140k in it's first year to a small profit last year.
So last year say 500K NET PROFIT from the 3 units.
Then add on to this the outdoor catering business that operate at places like the Oval. These take 10k a day min on huge margins. No net profit numbers but I have been told it is HIGHLY cash generative. But I will discount this to zero as I have no figures.

They have spent 100k cash and c 250k on legal fees on the deal. The last figures we saw stated they had 2.62 mil cash. Take off 400k to be prudent so we still have 2.2mil cash.

Shares in issue will be c 14 mil initially so at 17p the market cap is 2.38 mil.
Even if all earn outs are achieved (which will mean more profit) c 16.5 mil shs at 17p = mkt cap 2.8mil.

So as it stands we have a business capitalised at 2.38 mil with 2.2 mil cash that will make 500k + profits (extremely conservative). Now by anyones standards that's cheap even if you don't like indian food!

Then take a look at their plans:

Plans are to have 8/10 units in the South East initially in prime locations.
They will look to grow the outdoor catering business into indian wedding for starters.

Take off the cash and put these on a PE of 5 would mean a price of 35p. Bearing in mind the 500k profit is highly conservative and in reality will be much higher.

Conclusion: THESE ARE AS CHEAP AS POPPADOMS

[stuart14] 29/1/2008 16:55

201'000 shares, mostly sells. In total that is a grand total of £40k. The MMs keep a really really thin book here, so sells or buys really affect the price quickly. It could have simply been 1 holder liquidated that caused the share price fall today.

There are 3 restaurants and a catering business in the group. The group is profitable and run by the guy who came 2nd in the restauranteer of the year awards last year, in all categories. Beaten by Gordon Ramsey.

Tchenguiz is onboard because they have aggressive and bullish plans for the company. The british Indian Restaurant industry is worth 3 billion per year, and there are over 10'000 individual restaurants in the U.K. If they can grow the Co into a chain then the company will be worth a fortune.

Sure, it is a challenge, and completely different to what we thought they were persuing, but i think the deal is a good one.

Have a look at some other restaurant groups on AIM to see what they could be trying to emulate.

[ntv] 29/1/2008 16:40

as they have kept the vast majority of cash i would have thought there is room to grow the business

[ntv] 29/1/2008 16:39

hardie1960
think there was quite a lot of selling today!!! don't you
i guess a lot of punters didn't like the deal

[hardie1960] 29/1/2008 16:19

Big decisions to be taken by many.
Mass selling tomorrow?

[master rsi] 29/1/2008 16:07

All MMs have gone to the same price now 16.50 - 18.50p

[master rsi] 29/1/2008 16:04

re - everyone out for lunch ?

YES at the Mela Group Restaurants, just to taste the poppadom over there

[hardie1960] 29/1/2008 13:33

Very quiet on here today - everyone out for lunch ?

[deanmatlazin] 29/1/2008 11:25

after many years waiting..finally they decided to take over restaurant. LOL. I am sure most shareholders with receive poppadom as a divi

[hardie1960] 29/1/2008 11:22

Mela Group's turnover in November and December was 3 pct down from the same
period of last year, due to a decline in restaurant takings, the company said.

Steady drip over the next two years down to 2p. Will probably be wound up as most restaurants are.

Its too much of a coincidence that its 'Indian' Restaurants'. There must be some sort of grant or financial incentive to the owners. This is a mere cash shell and a very dubious one.

[hardie1960] 29/1/2008 11:00

Wasn't this Company supposed to be about investing in the huge Indian market?

They in fact buy 3 Indian restaurants, absolutely priceless, I just cant stop laughing :-)

Any one for an extra poppadom, mango chuckny anyone.

Got to be the best one ever!

[hardie1960] 29/1/2008 08:30

I think this could go down to single figures.

[stuart14] 29/1/2008 08:13

Hardie, I originally bought DGO at 95p, don't need your advice.

[hardie1960] 29/1/2008 08:09

Stuart,

press the sell button and put it straight into Dragon Oil.

[love it] 29/1/2008 08:07

nice profit missed out on my limit sell. But profit is profit good luck but I would take te money now.

[davethechef] 29/1/2008 08:06

Finally, a deal!!! I've been waiting 2years!
In these days of 'tightening money belts' and with already masses of Indian restaurants; difficult conditions to start.

[hardie1960] 29/1/2008 07:55

Stuart - what a load of dosh!

What a disappointment, take your money quick and run.

[stuart14] 29/1/2008 07:42

Wow. Loks like a good business model



They look like 3 established and sucessful restaurants. If they can be copied and rolled out easily this could be a great cash cow. There is no chain of Indian Restaurants.

[ra1] 27/1/2008 18:00

Im hoping it opens up at least at 35p.

[master rsi] 26/1/2008 19:54

Just plain news from the TIMES today..........

India Outsourcing, formed to buy up and invest in outsourcers, rose 3¾p to 20½p before being suspended while it negotiated a reverse takeover.

[cottlet] 26/1/2008 14:34

thanks for re[ly Stuart 14

[love it] 25/1/2008 18:01

Good luck guys was out today so set a limit sell order, got sold out while away. Then the news suspended. Made a small profit but what will happen now. Open up 2 x close price knowing my luck. Lets hope the suspension is a short one as the traders buying in on T trades.


Anyway good luck and fingers crossed.