Cybele Industries – Stocks To Watch

Cybele Industries     BSE Code : 531472

Formerly known as Q-Flex Cables, this Chennai based company was engaged in production of electrical items. However, company was not doing well and incurring losses. Hence, factory was closed down. Thus, Cybele had 10 Acre surplus land in Chennai.. Equity of Cybele is just Rs 4.78 Crores. Cybele entered into an agreement with Vijay Shanthi Builders for development of residential township on this land. Vijayshanthi will bear all expenses for development/making of township called PARK AVENUE. Cybele will be entitled to get 50% of total saleable area as its share. Construction of this project has already started and bookings of flats is going
at full speed.

Total revenue from this project to Cybele should be in vicinity of Rs 90 Cr in next 2 years. This entire revenue will be PBT for Cybele. It works out to nearly Rs190- 200 per share. Once, Cybele starts accounting these revenues, share price should go up sharply. Company is likely to invest these revenues for new projects in property development. Scrip appears risk-free buy at current levels. Current market cap of Cybele is just Rs 11 crores as against expected revenue/PBT of approx 90 cr from project underway. It
has potential to deliver more than 60-70% appreciation in less than 6 months and more than 100% in less than 1 year.

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