ELCID Investment – A real bargain deal

This is the first article on the blog. And it happened to be on a bargain deal.

I have been following Elcid investments since the time I have read an article on this company in ET. This stock currently trades at Rs 6 but is worth Rs 1 lakh! Your next question might be then why are people not buying this stock? Well daily a lot of people place a buy order for this stock but this stock is very thinly traded.

Over a million buy orders have been placed on Friday.

IN last 6 odd years the stock has just been traded about 20 odd times.

Why is this stock worth so much?

Elcid Investments is a microcap company, but it is one of the promoter entities of bluechip firm Asian Paints, an index stock that traded at Rs 1,345 on Friday. The company has two subsidiaries: Murahar Investments & Trading Company and Suptaswar Investments & Trading company. Both these subsidiaries are registered with the RBI as NBFCs. (ET)

As per the last available annual report, the company holds 28,313,860 shares of Asian Paints. Now I want you to do the math – multiply it with the current market price.

Not only that the company holds shares in at least 30 other listed companies. A glimpse below.

Its book value stands at Rs 12,901/-. Also, the company pays Rs 25 as a dividend.

Looks like a delisting offer of Rs 11,445 per share in 2013 didn’t go well. You can find out more on HBL.

Last year minority shareholders filed in a complaint to the market regulator to intervein in this matter and had asked for call auction session to BSE which was later rejected by them citing SEBI circular on trade control measures didn’t allow this. ET

It is said promoters had recently bought shares at around Rs 20,000 a piece.

People who had identified ELCID and hold this stock are lucky and smart I would say.

I was just trying to dig deeper and find out other companies where the market value of the quoted investment is greater than the current market cap with zero debt. Check the Screner.in the screen here.

Below is a sample. For the complete list click on that link. Add and delete the parameter as per your need/comfort.

Not all these are good companies or investment and also there is a possibility that none of them are good investments. This is for information purpose only. 

I will soon be writing a post on holding company/s with good potential. Watch out this space for more.

Do you have Elcid? Comment and share your thoughts on this companies valuation.