Benagl and Assam Company is an NBFC, an investment arm, which owns JK Paper, JK Lakshmi Cement and other JK group of companies. Their total valuation of the holding is close to Rs 400 crore for JK group of companies and other blue chip companies own roughly about Rs 50 crore. Along with that they own Rs 50 crore worth off preferential shares and liquid investments that roughly translates into Rs 500 crore. On a marketcap of Rs 300 crore I think the price is fairly justified.
But here lies the catch: the company has a subsidiary in name of Fennear Industries. If I see the potential of Fenner Industries, I think the stock—and there is no way that I can invest into the Fenner group—so I have to buy the stock of Bengal and Assam Company as the company owns 87% approximately into Fenner. If I see the Fenner potential going forward, I need to compare this with Hutchinson France, who are the number one player globally. The same story can be repeated for Fenner Industries that is based in India.
The company is growing into double digits consistently even during recession. If I see the entire aspect for Fenner Industries, I am not talking about other aspects but only focus about Fenner Industries, on an equity of just about Rs 2.5 crore, the company is sitting on a reserves of Rs 225 crore. Along with that this particular subsidiary of Bengal and Assam Company also owns Rs 200 crore worth of JK Group of companies.
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