Intrinsic Value

ROE vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

Claims likely to be “much more” than the amount currently admitted

Claims to the tune of around ₹1,800 crore admitted so far by the RP for Birla Tyres

After the sale of shares, the bank’s holding now stands at 1,06,91,192 equivalent to nearly 7.50 per cent stake in Birla Tyres, as per data provided by the bank.

IndusInd Bank sells 38 lakh pledged shares of Birla Tyres

Private sector lender IndusInd Bank has invoked around 14.6 million pledged shares of BK Birla group company Birla Tyres, amounting to 10.21% of the total equity share capital of the insolvent tyre maker.

IndusInd Bank invokes 14.6 million pledged shares of Birla Tyres | The Financial Express

SRF said that Birla Tyres defaulted on payment of ₹15.84 crore for the supply of Tyre Cord Fabric as of July 8, 2021.

NCLT orders insolvency proceedings against Birla Tyres for payment default

Admits petition filed by SRF claiming a default in payment of ₹15.84 crore

Kolkata Bench of NCLT initiates insolvency proceedings against Birla Tyres

A two-member Kolkata bench of the NCLT has also appointed Seikh Abdul Salam as Interim Resolution Professional (IRP) to run the operations of the company after suspending the board.

NCLT orders to initiate insolvency proceedings against Birla Tyres

The tribunal said it was “satisfied upon the basis of documents”, and observed there is no payment of the unpaid operational debt.

NCLT orders insolvency proceedings against Birla Tyres | The Financial Express

NCLT has ordered the initiation of insolvency proceedings against Birla Tyres Ltd in a case filed by multi-business chemicals firm SRF Ltd, an operational creditor of the BK Birla group firm. SRF had claimed a default in payment of Rs 15.84 crore, which includes a principal of Rs 10.06 crore and int…

NCLT orders insolvency proceedings against Birla Tyres

SRF Limited has filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), for initiating the Corporate Insolvency Resolution Process (CIRP) against Birla Tyres

Insolvency proceedings initiated against Birla Tyres at NCLT Kolkata

The tribunal said Seikh Abdul Salam is appointed as interim resolution professional of the company to carry out the functions as per the IBC and during the CIRP period, the management of the company will vest in the IRP.

NCLT admits insolvency application against Birla Tyres | The Financial Express

Future Lifestyle Fashions Ltd, Birla Tyres Ltd, Future Market Networks Ltd and Future Enterprises Ltd are among the other losers in the BSE’s ‘B’ group today, 25 April 2022.

Future Supply Chain Solutions Ltd leads losers in ‘B’ group

Birla Tyres is a tyre manufacturer and supplies to commercial vehicles and 2-wheeler companies

Birla Tyres Ltd

Birla Tyres Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Claims to the tune of around ₹1,800 crore admitted so far by the RP for Birla Tyres

IndusInd Bank sells 38 lakh pledged shares of Birla Tyres

IndusInd Bank invokes 14.6 million pledged shares of Birla Tyres | The Financial Express

NCLT orders insolvency proceedings against Birla Tyres for payment default

Kolkata Bench of NCLT initiates insolvency proceedings against Birla Tyres

NCLT orders to initiate insolvency proceedings against Birla Tyres

NCLT orders insolvency proceedings against Birla Tyres | The Financial Express

Birla Tyres Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Claims to the tune of around ₹1,800 crore admitted so far by the RP for Birla Tyres

IndusInd Bank sells 38 lakh pledged shares of Birla Tyres

IndusInd Bank invokes 14.6 million pledged shares of Birla Tyres | The Financial Express

NCLT orders insolvency proceedings against Birla Tyres for payment default

Kolkata Bench of NCLT initiates insolvency proceedings against Birla Tyres

NCLT orders to initiate insolvency proceedings against Birla Tyres

NCLT orders insolvency proceedings against Birla Tyres | The Financial Express

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock