![[MRQ from www.2010valuepick.blogspot.com]](http://www.kitconet.com/charts/metals/gold/tny_au_en_ingr_2.gif)
![[MRQ www.2010valuepick.blogspot.com]](http://www.kitconet.com/charts/metals/silver/tny_ag_en_ingr_2.gif)
![[MRQ www.2010valuepick.blogspot.com]](http://www.kitconet.com/charts/metals/platinum/tny_pt_en_ingr_2.gif)
![[MRQ www.2010valuepick.blogspot.com]](http://www.kitconet.com/charts/metals/palladium/tny_pd_en_ingr_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_ingr_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_ingr_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/platinum/t24_pt_en_ingr_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/palladium/t24_pd_en_ingr_2.gif)
![[MRQ from www.2010valuepick.blogspot.com]](http://www.weblinks247.com/exrate/24hr-inr-small.gif)
BSE: 532290 NSE: BLBLIMITED Rs 11.10 as 21.09.2010
Outstanding shares 5.29 crore of Re 1 each Promotors holding 67.3 percent
The company BLB hold investment worth Rs 5.10 crore in shares of various companies (which includes shares of stock exchanges)
1.73 lakh shares in VBC Ferro Alloys Ltd at book value of Rs 248 a share at current market price of Rs 388 the unrealised book profit of Rs 2.42 crore
5 lakh share of Shree Renuka Sugars Ltd at Book value Nil and at current market price of Rs 81 the unrealised book profit of Rs 4.05 crore
50700 share of Reliance Ltd at Book value Nil and at current market price of Rs 1030 the unrealised book profit of Rs 5.22 crore
1 lakh share of Jindal Steel & Power Ltd.at Book value Nil and at current market price of Rs 710 the unrealised book profit of Rs 7.10 crore
investment in shares of stock exchanges BSE,DSE,CSE, UPSE at Rs 0.53 crore is worth more than Rs 2 crore
So the total unrealised book value is around Rs 20.30 crore and likely market value of Rs 25.40 crore on outstanding shares of 5.29 crore works out to Rs 4.80 a share and the company hold shares in certain unlisted entites at around Rs. 1.20 per share which can be valued at same value.
One can evaluate a final intrinsic valuation of Rs 33.60 ( Rs 30.60 for assets and Rs 3 as earning for the year 2010-11) against which the trading at Rs 11.20 ie a discount of 67 percent to intrinsic value
As against the net book value of Rs 27.27 the company has net borrowing to the tune of Rs 7.9 per shares and has invested
in shares and commodities (stock in trade) which is worth Rs 9.5 per share
in net fixed assets Rs 1.60 per share
in cash and bank Rs 15.90 per share
in investment Rs 6.00 per share (at market value already discussed above)
in other current assets Rs 4.7 per share & in loans and advances and debtors Rs 7.2 per share as reduced by current liabilites Rs 6.4 per share returning a net value of Rs 5.5 per share
Thefollowing may also be considered
1) the company follow an accounting treatment of booking profits every intervening year by shifting stock from stock in trade to long term investment, so that earning for a year will not be comparable with following year
2) the free float of share available is 1.73 crore shares ( 32.7 per cent of 5.29 crores shares outstanding) excluding promotors holding 67.3 percent the average quantity trade in BSE and NSE on an average is in range of 15000 - 30000 shares a day
3) I evaluate it as high risk stock for minimal exposure in portfolio
You probably missed few points -
ReplyDelete1)
"During the year the Company has surrendered the Certificate of Registration as Depository Participant-ship of Central Depository
Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL).
The Company has obtained Trading Membership for Currency Derivative Segment of United Stock Exchange of India Limited
and also obtained the Clearing Membership of Currency Derivative Segment of MCX-SX Clearing Corporation Limited."
This means company is now paying interest in commodities rather than equities. My point is also supported by recent investment of Rs 4 crore approx investment on BLB Commodities Pvt Ltd (its subsidiary). As we know BLB was an arbitrage company to a greater extent, but due to the development of equity market it was finding it hard to gain from that prospective, thus now it is shifting its interest from Equity to Commodity ( a much lesser developed market, thus gaining chance for arbitration ).
2) BLB Institute of Financial Markets -
Higher education is a hot space. I have noticed BLB is paying great attention to this aspect. You might have seen huge number of ads related to the institutes various courses. So in future if they improve from the way of courses, they might have great value from this subsidiary too.
3) BLB Realty Ventures Ltd -
It got approval for a plot in Noida in lease for 90 years. Till 2010 this subsidiary was more or less inactive. But with receiving of permission for 22,000 sq feet of land @ investment of Rs1.50 Crore (approx) we may see action from this subsidiary too.
4) With market gaining almost 15% from June 2010 till date, we may assume a chance of good gain of at least Rs 5 crore profit for this quarter turning to EPS of Rs 1/share for the quarter.
5) 67% shares are hold by promoters
20% shares are hold by 2 institutions
Thus public holding is just 13% (small shareholders), we may consider weak hands.
Aggregating all the points, if promoters are wise than we might expect great gain from the stock.
Thanks pratik for offer your view on BLB
ReplyDeleteKeep us updated
Thankyou
BLB Ltd has informed BSE that the Company has incorporated a 100% Wholly Owned Subsidiary Company in the name of M/s. Sri Sharadamba Properties Limited vide Certificate of Incorporation dated December 07, 2010 to carry on the business of real estate, purchasing, selling and developing land or plot and other related activities.
ReplyDelete