2010VP18 BLB

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