Tag: Investment Company

Summit Securities–Re listing today

We are happy that Summit Securities is getting listed today after a lot of persuasion.

Summit Securities is part of the RPG group and is a finance company holding shares of group cos of RPG group. The company got created on the merger of five similar finance companies – CHI Investments, Summit Securities, Octav Investments, Brabourne & RPG Itochu (unlisted).

We have been tracking Summit Securities as we had recommended CHI Investments, which got merged on 2 February 2010.

So what is the value in the company:

Post re-structuring the equity of the company is 10.90 Crore.

Some of the major investments held by the company as per consolidated accounts are:

Summit_Sec_-_Consolidated Continue reading Summit Securities–Re listing today

Majestic Auto – Updates

We earlier discussed about Hero Honda and Majestic Auto at our blog and the valuations just keep improving.

As expected, Hero Honda has appreciated from approx Rs 1,600 to Rs.1935 i.e. a gain of 21% in less than 5 months; while Majestic Auto is yet to follow. The current upside in Hero Honda is creating fresh opportunity for Majestic as the gap between the Market Value of Investments (16.25 lac shares of Hero Honda) and the companies own market cap is widening everyday.

The valuation of Majestic as of today:

Own Market Cap of Company: 65.50 Cr

Value of investment in Hero Honda (16.25 Lakh shares) : 314 Cr

Apart from these investments, the company also has a factory, land and other assets.

Discount: >80%

Majestic Auto Website

BNK Capital – Hidden deep value

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
Name Qty CMP Value (Cr)
CESC Ltd 30,17,351 378.00 114.06
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
Jaipraksh Associates 37,500 135.00 0.51
Total 142.97
* 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.