“I have done a small research on the company called as BENGAL & ASSAM COMPANY LTD. I hereby invite the views and opinions of my friends/ other group members on the same.
I would like to tell you about one stock which can be considered as "CASH AVAILABLE AT A DISCOUNT" and the name of the company is BENGAL & ASSAM COMPANY LTD. ( J K GROUP’S HOLDING CO.)
This is over 63 years old company. The consolidated EPS of the company for the FY 10 is approx. Rs. 70/- and estimated EPS for the FY 11 is likely to be Rs. 85 to 90. The current Market price of the Stock is Rs. 225/-
Other Highlights of BENGAL & ASSAM COMPANY LTD. (BACL) are as under:
BACL owns 90% in Fenner India Ltd
Fenner India is an undisputed market leader in the manufacturing and sell of V Belts, Oil Seals, Eng products etc since years. There is no nearest competitor of Fenner in India. Fenner’s capital is Rs. 2.48 crs and Reserves are over Rs. 225 crs and Annual Sale is over Rs. 300 crs. Book Value of Fenner is approx Rs. 900 per share.
Other Subsidiary of BACL are
Southern Spinners & Processors Limited
Modern Cotton Yarn spinners Limited
Panchmahal Properties Limited
LVP Foods Private Limited
Dwarkesh Energy Limited
Acorn Engineering Limited
Modern Cotton Yarn spinners Limited
Panchmahal Properties Limited
LVP Foods Private Limited
Dwarkesh Energy Limited
Acorn Engineering Limited
Besides the above, company is holding several other investments in many blue chip listed and unlisted companies.
Total Cost of BACL’s investments as on 31st March’ 2010 is Rs. 375 crs (Approx.)
The Book Value of BACL is approx. Rs. 500/- per share as on 31st March’ 2010 and the intrinsic value per share could be in the range of Rs. 2000 to 3000 per share.
Besides this, BACL owns sizable stakes (ranging from 30% to 50%) in other flagship JK group’s listed companies such as JK Lakshmi Cement, JK Paper, JK Tyre, JK Agri genetics, JK Sugar Ltd etc.
BACL owns several properties (either directly or through subsidiaries) worth hundreds of crores.
Considering the facts stated herein above, i strongly feel that BACL shares at Rs. 225 means "CASH AVAILABLE AT A DISCOUNT.
Best Regards
CA. Laxmikant Kabra
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