BNK Capital – Hidden deep value

Posted at February 19, 2010 written by Ayush

BNK Capital is a small finance company with experience of over several decades. The company provides brokering services across the various products such as equities, commodities etc and serves several HNIs and corporates.

The interesting part is the market value of the investment the company holds. Some of the major investments are:

As on 18th Feb, 2010
Name Qty CMP Value (Cr)
CESC Ltd 30,17,351 378.00 114.06
India Foils Ltd. 2,24,000 10.00 0.22
Mcleod Russel Ltd. 2,74,205 234.00 6.42
KEC International Ltd. 3,75,105 577.00 21.64
Zensar Technologies Ltd. 4,200 286.00 0.12
Jaipraksh Associates 37,500 135.00 0.51
Total 142.97
* Co holds a lot of other investments also totalling 4-5 Cr

At CMP of about 42, the co’s own Mcap is close to 25 Cr while the value of marketable investments on Balance sheet is 143 Cr!! Hence the company is available at a discount of 82.65% to the value of investments. Similar valuations were once found in CHI Investments too, which was then our favorite and yielded very good returns.

Yes, many of the similar finance companies trade at discounts to their market value of investments, but such discounts are usually not more than 30-35%. Here we are getting a company at 83% discount.

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  • Manmohan
    Check these bulk deals:

    23/6/2010 500069 BNK Cap Markets BRIJNATH KHANDELWAL AND CO. B 47901 41.26
    22/6/2010 500069 BNK Cap Markets BRIJNATH KHANDELWAL AND CO. B 37970 40.20
  • Ayush
    Dear Rajeev,

    Thanks for the encouragement.

    Regards,
  • Rajeev
    Ayush

    Thanks for sending the annual report. Agree with you completely that is grossly mispriced security. Initiated a small position in this company and will add more. Have been very impressed with some of the recommendations so far - BNK, Majestic Auto, etc.

    Thx.
  • Ayush
    emailed.

    @Rajeev - We use our inhouse software - http://screener.in/. One can search for companies by building query on your own logics.

    Watch to demo video on the website...Try it out.
  • MoE
    While you are at it can u send the 2008-09 report to me too..
    Thanks
  • Rajeev
    Hello

    Could you please send me the annual reports for the last 3 years. Once again would be very interested in knowing how you find this information as websites don' t seem to have this.

    Thanks.
  • Ayush
    Dear Manish,

    I have emailed the FY 09 annual report of the company.

    Regards,
  • manish
    Hi can u please tell me where to find an annual report of the BNK capital markets.
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