CHI Investments
Investment Rationale:
-
Holds investments worth Rs. 224.00 Cr as on 11th May, 2009 while it’s own market cap is just Rs. 28.50 Cr. The company is debt free. (Annexure 1)
-
Compared to other investment/holding companies, CHI is available at just 1/10th of the value of investments it holds while others trade at about 1/4th of the value of investments they hold. (Annexure 2)
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The company majorly holds shares of CESC & KEC International, the stock should move at least linearly to the stock price movements of both the stocks and with better stock discovery, the discounting can reduce giving it a multi-bagger potential. Being in power sector and leaders in their business areas, both CESC & KEC International are expected to do well. (Read the latest Business Line : KEC targets to be a $ 2 billion company in 3-4 yrs.)
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CHI Investment receives almost 4-5 Cr as dividend/interest income annually.
Annexure 1:
Valuation of quoted investment as on May 11, 2009: |
||||
|
|
Price |
Value Rs in Cr |
|
CESC Limited |
2056794 |
250 |
51.42 |
|
CFL cap |
3837500 |
1.75 |
0.67 |
|
Harrison Mallya |
728150 |
62 |
4.51 |
|
KEC International |
4142519 |
258 |
106.88 |
|
Summit securities |
3128298 |
6.7 |
2.10 |
|
Philips |
1903114 |
56 |
10.66 |
|
RPG cable |
2200280 |
14 |
3.08 |
|
Brabourne Enterprise |
1064560 |
6.8 |
0.72 |
|
RPG pharma |
1064560 |
24 |
2.55 |
|
Saregama |
253444 |
67.5 |
1.71 |
|
Zensar Technology |
2222138 |
95 |
21.11 |
|
|
|
Total |
205.42 |
|
Number of shares: 11464253
Investment per share: Rs. 179.18
Current price: Rs. 25.00
Current Market Cap: Rs. 28.66 crore
Discount: 86.05%
Annexure 2:
Comparison with other similar co’s – holding shares of listed companies
Comparison as on 11th May, 2009 |
||||
Name of company |
Market cap of the co. itself |
Market Value of investments it holds |
Main Holding in |
Leverage (No of times) |
|
|
|
|
|
CHI Investments |
28.66 |
223.92 |
KEC Int. & CESC |
7.81 |
BNK Capital Markets |
15.50 |
91.29 |
CESC |
5.89 |
Octave Investments |
4.06 |
18.60 |
KEC Int. |
4.58 |
Industrial & Prudential |
26.1 |
108.97 |
KSB Pumps |
4.18 |
HB Portfolio |
35.57 |
124.72 |
Jaiprakash Ass |
3.51 |
Mc Dowell Holding |
57.06 |
195.14 |
United Breweries & UB Holding |
3.42 |
Unipos Enterprises |
40.72 |
132.59 |
United Phosphorus |
3.26 |
SRF Polymers |
79.34 |
246.51 |
SRF Ltd |
3.11 |
United Breweries (Holding) |
775.11 |
2019.13 |
United Breweries & United Spirits |
2.60 |
Nalwa Sons Investments |
277.56 |
544.25 |
JSW Steel & Jindal Saw |
1.96 |
Jindal Sowthwest Holding |
449.55 |
833.65 |
JSW Steel |
1.85 |
Balmer Lawrie Investments |
177.60 |
283.82 |
Balmer Lawrie |
1.60 |
Parry Agro |
714.4 |
1024.74 |
Carborundum Uni, EID Parry & Tube Investments |
1.43 |
Risk: Being just a holding company, one has to remember that the investments might not be liquidated for lifetime. Hence it is not right to think that the holding company can be valued equal to the value of investment it holds until and less value unlocking is possible. Having stated this risk, I feel 90% discount is on the much higher side.
Dear Mr.Mittal,
Can you pls buy these shares for me?? and make me wealthy !!
Dear Mr.Mittal,
Can you pls buy these shares for me?? and make me wealthy !!
Hi man…
so u got into the holding company groove after all.. 🙂
may i request u to value this one on the basis of dividends/other income it receives from its investments?
cheers
Neeraj
Hi man…
so u got into the holding company groove after all.. 🙂
may i request u to value this one on the basis of dividends/other income it receives from its investments?
cheers
Neeraj
Neeraj,
CHI receives almost 4-5 Cr as dividends. So valuing it at 10 times earnings the stock has 50-70% upside potential 😉 At Rs 50 you can sell half of your holding and retain the rest free of cost for possible multibagger returns 😀
Regards,
Ayush
Neeraj,
CHI receives almost 4-5 Cr as dividends. So valuing it at 10 times earnings the stock has 50-70% upside potential 😉 At Rs 50 you can sell half of your holding and retain the rest free of cost for possible multibagger returns 😀
Regards,
Ayush
Amit,
You must have yourself analysed that the proposed merger ratios are unjust to the shareholder of CHI Investments.
Rather than joining on a wrong thing, I think we all must get together and protest. I’m doing my part.
Regards,
Amit,
You must have yourself analysed that the proposed merger ratios are unjust to the shareholder of CHI Investments.
Rather than joining on a wrong thing, I think we all must get together and protest. I’m doing my part.
Regards,
Dear sir,
i am holding no of 02 equity shares of CHI INVESTMENTS LTD please let me inform about merger scheme with RPG ITO
what about ambica agarbati ) dark horse???
Ambica Agarbathies and Aroma Industries Ltd is actually a conglomerate of 7 different businesses namely:
Agarbathi Division : Ambica is pioneer in Agarbathi business with experience of more than 55 years. It has various branded agarbathies for the local and export markets. In India it has more than 300 distributors/ dealer network in AP/TN/MP/Maharashtra/Gujarat state
Ambica Empire Division : It has a 4 Star Hotel with more than 100 rooms at Chennai. The hotel is affiliated to Best Western Inc. USA. At today’s cost the Hotel is should be worth more than Rs. 60 crores.
Ambica Real Estate : It has developed land at Bangalore and realty project costing Rs. 30 crores with 600 members is nearing completion.
Ambica Film Production and Distribution : Under this division there are multiplexes air-conditioned theatres and it has already produced 3 feature films valued at Rs. 15 crores and multiplexes at today’s cost could be worth Rs. 10 crores.
Ambica Wind Power : Under this division Company is setting up 50 MW Wind Power project costing Rs. 200 crores at Poolavady near Coimbtore TN
Food Plaza at Vishakhapatnam Railway Station
Software Division
1) Company is in Wind Power Generation, Hotel Business, Infra and
Agarbathies. company Circle people and Operators are accumulating at current
price. Because Company Stock Good Value at 13.9/- Good Profit making companyand
Book Value at 17/- and Good dividend paying company.
2) Equity is very small at 16 Cr promoters Holding 45.5% and Corporate
Bodies 19.5% and Public 35%.
3) Company recently allotted shares at 18/- to M/s Trinethra Infra
Ventures Ltd and Mr. Puvvada Bhaskar Rao – for company future expansion plans in
Wind Power Generation.
4) Good Profit Making Company for 2008-09 EPS 1.7 and Estimated EPS for
2009-10 is 2.3/- and 2010-11 EPS will zoom for Expansion income and Profits will
come.
5) Company having Good Reserves and Good Assets in Hyderabad , Chennai,
Eluru Adonia and rajam. In Chennai Hotel Property worth of 40 Cr and Shoppring
Malls and other lands all over worth is nearly 150 Cr. Company Equity 16 Cr
means per share worth is nearly 95/-
6) Company having lot of Expansion Plans in WindPower and InfraBusiness.
7) For this year Expected Revenue 75 Cr and Net Profit 2.9 Cr EPS 1.9/-
and 2010-11 NetProfit will zoom with Expansion Income.
This stock is not participated for this market rally. Last 6 months trading
between 12/- to 17.5/-; So all bulls are eyeing in this stock to grabbing for
Good Value stock.
Public holding is only 35%. Net worth of company is around 100 crores,so
operators are accumulating public shares. Soon it will burst on restructuring
infra, hotel, wind power and aroma.
AMBICA AGARBATHIES & AROMA INDUSTRIES Ltd having good Book value at 17/- and
Good promoters Holding, And Good Dividend paying company.
Recently company allotted stocks at 18/- to M/s Trinethra Infra Ventures Ltd and
Mr. Puvvada Bhaskar Rao -for expanding future business plansfor Wind Power.
Good Valuable Buy AMBICA AGARBATHIES & AROMA INDUSTRIES Ltd; 10/- face Value
Trading at 14/- with Target of 35/-. Risk is very very less because company
stock was very Valuable because Book valueat 17/ and Good profit making Company
and Good Properties in Hyderabad , Eluru, Chennai, Rajam and Adoni.
AMBICA AGARBATHIES & AROMA INDUSTRIES Ltd declared results with 65 Cr Income abd
1.5 Cr Net profitand EPS 1.2 for 2008-09 and for 2009-2010 estimated Income 75
Cr and NetProfit 1.9 Cr with EPS of 1.7/- and declaring dividend also.
ayush do your research and tell us to buy his stock or not
Hi Ankur,
Sorry, we haven’t been tracking this company. Though based on the above article the stock may hold value and do well in short term, but I didn’t like the business they are present in.
Regards,
Hi Ankur,
Any update on AMBICA AGARBATHIES & AROMA INDUSTRIES? It seems to be goign downhill over the last few years….