Bengal Assam

By Research Desk
about 8 years ago

Though the name of the company gives one the impression that it could be a tea/plantation company, it is actually a Singhania group company, which operates as an Investment company and its main objective is to actually look into the financial investments of JK group. It is more like a holding company of the Lakshmipat Singhania family.

In existence since 1947, financially the company is really no great shakes. For a company, whose stock price is quoted above Rs.800, with a market cap of over Rs.750 crore, its net profit of Rs.54 lakh for Q1Fy17, down from Rs.6 crore in previous Q1, is pitiable on an income of Rs.6 crore.

The only attraction that the market has for this company is its rich pedigree, small equity of Rs.8.68 crore and reserve of Rs.344 crore, keeping hope of bonus alive. More importantly, it holds big stakes in JK Lakshmi Cement, Fenner India, JK Tyre and JK Paper. The value of this equity holdings plus the huge realty holding is what makes this company attractive, nothing on operational performance at all.

The Singhania family owns 73.96% stake and LIC too has a 2.38% holding.

9347.75 (+130.10)