Wednesday, 30 January 2019

BHARAT NIDHI LTD – FY 2018 RESULT UPDATE



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.

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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