BNK Capital is a small finance company with experience of over several decades. The company provides brokering services across the various products such as equities, commodities etc and serves several HNIs and corporates.
The interesting part is the market value of the investment the company holds. Some of the major investments are:
|As on 18th Feb, 2010|
|India Foils Ltd.||2,24,000||10.00||0.22|
|Mcleod Russel Ltd.||2,74,205||234.00||6.42|
|KEC International Ltd.||3,75,105||577.00||21.64|
|Zensar Technologies Ltd.||4,200||286.00||0.12|
|* Co holds a lot of other investments also totalling 4-5 Cr|
At CMP of about 42, the co’s own Mcap is close to 25 Cr while the value of marketable investments on Balance sheet is 143 Cr!! Hence the company is available at a discount of 82.65% to the value of investments. Similar valuations were once found in CHI Investments too, which was then our favorite and yielded very good returns.
Yes, many of the similar finance companies trade at discounts to their market value of investments, but such discounts are usually not more than 30-35%. Here we are getting a company at 83% discount.