Bharat
Nidhi Limited (BNL), incorporated in 1942, is engaged in the
business of distribution of newspapers and periodicals in Delhi & NCR. Apart
from this, the Company has been
investing in Bennett,Coleman
& Co (BCCL) and its associate company which holds strong investment
background fetching the company a great integral value year by
year , Debt based Mutual funds and other avenues from time to time. The Company is also registered as an NBFC
with RBI.
LISTING
STATUS: SHIFTING FROM CSE TO DISSEMINATION BOARD
Bharat Nidhi Ltd was
currently listed on CSE (Calcutta Stock Exchange Ltd). There was a case filed
against 63 companies (including BNL) illegally shifted from Dissemination Board
to CSE.
Followings
are the final
order of the case dated 6th Dec, 2018:
SEBI vide letter dated
January 12, 2018 inter-alia advised Calcutta Stock Exchange (CSE) to
immediately ensure:
(a) Transfer of all the
63 companies (including Bharat Nidhi Ltd) which have got itself listed on CSE
from the date it became non-operational till date, to the Dissemination Board
of BSE/NSE and refrain from listing any company till the matter of compulsory
exit is sub-judice.
(b) Transfer of listing
fees if any, received from all those 63 companies into the Investor Protection
Fund (IPF) of CSE.
(c) Submit a compliance
report in this regard within 15 days.
BNL has also filed an
affidavit enclosing therewith a letter dated 10.08.2018 received from CSE
affirming that if BNL does not elect the option for voluntarily de-listing or
for obtaining a listing in the Nation-wide Stock Exchange, it shall be transferred
to the Dissemination Board within 45 days from receipt of this communications.
Since BNL had not opted
for any of the two options as mentioned in the letter dated 10.08.2018 it was
finally ordered (High
Court of Delhi dated 6th Dec, 2018)
to
be shifted to be transferred to the Dissemination Board.
Thus
based on the latest announcement by BNL there is a positive news for investors
to bank on the shares as there shall be either buy back or listing news as per Dissemination
Board circular dated 10th Oct, 2016 soon fetching them good return on
their investment.
FINANCIAL
HIGHLIGHTS – (Fig in Crs.)
|
Particulars
|
Standalone
|
Consolidated
|
||
|
March 2018
|
March 2017
|
March 2018
|
March 2017
|
|
|
Total Income
|
69.88
|
66.64
|
69.88
|
66.64
|
|
PAT
|
13.12
|
8.16
|
255.05*
|
238.94*
|
|
EPS
|
44.96
|
27.95
|
873.40
|
818.22
|
|
Equity Paid Up
|
2.92
|
2.92
|
2.92
|
2.92
|
|
Face Value
|
10
|
10
|
10
|
10
|
|
Book Value
|
324.68
|
279.74
|
11122.45
|
10043.83
|
*In consolidated data
PAT considered is inclusive of share in profit/loss of associate companies (i.e
BCCL, Bennett Property Holdings Co.Ltd, Mahavir Finance Ltd, Matrix Merchandise
Ltd and Vasuki Properties Ltd.)
MAJOR
INVESTMENT:
|
Company Name
|
No of Shares
|
% Stake
|
|
Bennett, Coleman &
Co. Ltd.*
|
7,00,41,600
|
24.41%
|
|
Bennett Property Holdings Co. Ltd**
|
1,16,73,600
|
24.41%
|
|
HDFC Bank #
|
28,69,565
|
0.11%
|
|
Times Internet Ltd
|
12,41,906
|
|
|
Matrix Merchandise
Ltd
|
2,60,000
|
|
|
TM Investment Ltd
|
1,40,000
|
|
|
Arth Udyog Ltd
|
90,000
|
|
|
Times Publishing
House Ltd
|
24,000
|
|
|
Hindustan Times Ltd
|
6,080
|
|
|
PNB Finance &
Industries Ltd
|
5,597
|
|
|
Ashoka Marketing Ltd
|
2,000
|
|
|
Vasuki Properties Ltd
|
1,07,485
|
|
|
Mahavir Finance Ltd
|
1000
|
|
|
Sahu Jain Services
Ltd
|
500
|
|
*As per the media report as on May 2008 the value of
BCCL gas been considered more than Rs.120000 Crs by leading merchant bankers.
Also as per the DRHP of ENIL, subsidiary of BCCL, the NAV of BCCL as on 2005 was reported Rs. 24,118.2 per share before
bonus.
|
Particulars
|
Fig in Crs.
|
|
|
FY 2005
|
FY 2016
|
|
|
Total Income
|
2363
|
9977
|
|
PAT
|
529
|
1291
|
|
EPS
|
166.18
|
45.00
|
|
Equity Paid up (FV – 10)
|
31.88
|
289.96*
|
*Bonus declaration in ratio 9 shares for every 1 share held
There
is a CAGR Growth of 14% in revenue & 8% in PAT of BCCL from 2005 to 2016.
Thus based on this growth performance we can conclude that the overall
valuation of BCCL would have increased multifold since 2005. Media &
Entertainment companies are currently trading at an ID PE – 27.
** The Honorable High Court of Bombay vide its order dated
October 14, 2011 has sanctioned the scheme of Arrangement between the Company
and Bennett Property Holdings Company
Ltd. (BPHCL, a wholly owned subsidiary of the Company up to the appointed date)
for Demerger of the Companies real estate business along with related assets
and liabilities to BPHCL with appointed date as April 01, 2011 and effective
date as January 01, 2012. The shareholders of the Company were issued 1 share
in BPHCL for every 6 shares held in the Company.
# HDFC Bank Ltd
is listed on BSE/NSE trading at Market Cap of Rs. 569,000+ Crs. It is a leading
private sector bank in India.
All the above mentioned invested companies (I.e PNB Finance,
Arth Udyog, etc.) hold direct and indirect holding in BCCL. Thus with rise in
overall valuation and performance of BCCL, one can gauge the similar rise in
NAV of each of these companies. This contributes to rise in NAV of BNL.
RECOMMENDATION
– “BUY”
Thus based on strong investment portfolio and
announcement of shift to dissemination board which might result in “Buy Back”
or “Listing” in near future, we recommend “BUY-
Bharat Nidhi Ltd.”
For
buying and selling any unquoted / unlisted / delisted or suspended shares in
physical or demat you can reach us at Contact No.91+ 09215709100 or Email us on
mittalmanish2003@gmail.com
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