Vardhman Holdings Limited

Buy Vardhman Holdings Limited (Share it with others too., your appreciation is my motivation)

Current market price: 3670. Long term target: 7500. Book Value: 1435. P/E Ratio: 5.5

Sector: Finance

Industry: Finance - NBFC 

EPS : Rs.663.35

Book Value : 1435.16

Price/Book : 2.63

P/E : 5.5

Industry P/E : 43.66

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

About Company

Holding company of Vardhman Group Stocks.

Holds shares of Vardhman Textiles, Vardhman Special Steels & Vardhman Acrylics.

Also holds shares of Infosys, Sun Pharma, Asian Paints, Havells.

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

Key holdings: Market Value

Vardhman Textiles Rs.1,975 Cr

Vardhman Special Steels Rs.34 Cr

Vardhman Acrylics Rs.4 Cr

Total Rs.2,013 Cr

Market Cap of Vardhman Holdings: Rs.775 Cr

Cash/Current Investments as of September 2017: Rs.200 Cr (so they are cash rich, in fact most of the cash is deployed into current investments)

It is a zero debt company.

If you look at market value of Investments verses it's own market cap it's trading at a 60% discount to its value of Investments. 

If we remove the cash from that ie. Ex-cash it's trading at a discount of 70% to value of Investments.

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

But concern for company is earning mostly through dividend though the earnings per share has gone up from Rs.35.85 in FY13 to Rs.150.9 in FY16, dividend has remained constant at Rs.3 per share.

Another concern is the free float for the company is very low.

Promoters 74.9%

Baring India PE 2.94%

Anil Goel 2.94%

Seema Goel 1.03%

Anand Shah 1.93%

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