Surya Roshni's industrial, consumer businesses doing well; make a case for demerger: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital, shares his view on Surya Roshni.

ET Now: What is your view on Surya Roshni?

Prakash Diwan: Surya Roshni has been around for a fairly long time. The old traditional steel structures and pipes business and the LED, tubelight business have grown to such a scale where a possible demerger could make sense, financially and operationally.

The LED, tubelight business is also doing exceedingly well. Just to give you some numbers, the way we saw it at Rs 150 book value, it is available at Rs 120 whereabouts. Also, the company has clocked a PAT of Rs 60 crore in FY15, suggesting PE multiple of 15 times. Its market capitalisation should have been close to Rs 900 crore, but it is just about Rs 500 crore. If you segregate their two businesses, industrial and the consumer businesses, they will give individual value to the stock. Definitely, it seems to be somewhere out of sync.