Balmer Lawrie

This is a PSU wherein of the paid-up equity of the company is just Rs.28.50 crore of which 62% equity is held by Balmer Lawrie Investments, in which Central Government is holding 60% stake. This is a is a multi-divisional company engaged in Industrial Packaging, Logistic, Infrastructure & Services, Travel & Tours, Greases & Lubricants. But when you look at the breakup of the income earned, it dawns that more than grease and logistics, the company now earns more as a travel and tour company! For Q2FY14, the company posted a net sales of Rs.650 crore of which Rs.296 crore came from travel and tour and this has been the trend for some time now. Industrial packaging contributes 18%, logistics infra contributes 19% while grease and lubricants is at 15%. But travel and tours contribution to the EBIT is pathetic at just 16% with logistics infra contributing the maximum at 56%. So turnover is boosted by travel and tour while profit is boosted by logistics infra; looks like it pays to be multidivisional.

The company has ended Q2FY14 with a net profit at Rs.29 crore, down 15% (YoY). Like all PSU’s the company has a good cash balance at Rs.348 crore and reserves is at Rs.758 crore. The company is debt free and there is no interest burden. The company has been in existence since 1867 and it is sitting on a gold mine of realty. Market cap stands at Rs.880 crore.