The Board of
TRF has approved the proposal of sale/divestment of its entire stake in its
step-down subsidiary – York Transport Equipment (Asia) Pte, Singapore. This
should be a positive for this small-cap company with a small equity of just
Rs.11 crore.
Valuations : TRF has Net Cash / Share of Rs. 60 & it
is now trading at ~20% Discount to its EPV. RoE is high at 39% while RoCE is on
the lower space at 1% only with Revenue growth of ~6%. Disposing at Higher level
is wise.