BNK Capital (BSE Code: 500069) holds investments worth around 120 crores, While its market cap is only 27 crores.
Usually holding companies are valued at a discount but not at such levels, At the CMP of 27.45 BNK Capital is quoting at around 23% of its investment value is a bargain investment.
Investment Holding Sheet
Annual Report 2010-11
Do let me know your views/feedback.
Disclosure – I own shares in BNK Capital.
I was looking for a Child Plan for my kid, I researched a bit, met a few agents, found all of them really fcukall, nothing was clear or was any decent returns promised, also probably coz they are bound by IRDA not to promise any returns, all projection were some excel games.
Also one does not know if any of these insurance companies will be around, remember AIG, Fortis etc.
IMHO the best option is to invest in a small flat.
Buying a small flat has the following benefits :-
- Asset Appreciation (Average 10-15% annually)
- Tax Saving on Principal repayment.
- Rental Income can offset your EMI payments a bit
- Reverse SIP (Take Loan & Invest) is better than SIP (Regular payments).
- Inflation Game – Assume interest Rate is 10% and Rate of Inflation is 10%, So you are virtually paying 0% Interest rate compared to the money put in a bank.
- Weekend outings and make more friends.
- Historically property has always given decent returns in India.
If you want to take insurance, buy a simple term insurance and yes, do keep investing in equities but not with the funds which you’ve earmarked for your kids.
My current holdings :-
- Bajaj Holdings
- Mcdowell Holdings
- Vardhaman Holdings
Staying invested for 6-12 months.
Why I love this company:
• Low Priced Product Company
•75% discount to IPO Price
•Dividend Paying (5%)
•Book Value higher than CMP
•Real Estate unlocked Value
•Strong Promoters – Vishwas Mahajan, Achyut Godbole
•Microsoft strong partnership
•Valuation: @26 Crore market Cap looks very cheap considering Cash from IPO, Real Estate Value & Zero Debt
Roshan had first introduced this scrip to me a few years ago, kinda participated in the rally from @ 18 to 50 and back to current levels.
The company mentions in its balance sheet that its different from the other Indian IT companies who are more into IT Services and allied stuff, Compulink is a product company, a different ball game.
This is the kinda company that surely seems like good value investment if you are in it for the long haul.
Would love to hear to your views/inputs on the scrip.