In the last 4 months, Ceat's stock price has zoomed 40 percent. CESC's stock has moved up 69 percent. Did you miss out on these rallies? Don't worry - there is an RPG Group investment company that holds stakes in both these companies and others and is available at a 90 percent discount to the value of its investments.
Since it is the season of small caps and midcaps we decided to find a company where the investment value is much higher compared to market cap.
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This company is an investment company of RPG Group known as STEL Holdings. Earlier known as Sentinel Tea & Exports Limited but the name was changed to STEL Holdings in July 2011.
The market cap of the company is only Rs 20 crore right now but the total value of investment that they hold is nearly Rs 220 crore which is 11 times the market cap of the company. There is no debt on the books of the company, is listed on BSE and NSE, the book value is nearly Rs 62 compared to market price of nearly Rs 10-11 and so, even the book value is nearly 6 times the current market price.
The company has nearly 24.9 lakh shares of CESC which are valued at around Rs 115 crore. Ceat has nearly 13.7 lakh shares, value is nearly Rs 52 crore. KEC International, which is nearly 46.9 lakh shares is nearly Rs 31 crore and they have holdings in other companies like RPG Life Sciences, Summit Securities and Phillips Carbon Blac. Put together, it is around Rs 220 crore.
Also, they have some investments in the unquoted investments like they hold nearly 12 lakh shares of Spencer and company for which market is waiting for the initial public offering (IPO) to come. Whenever it comes, again investors will reap its benefits. They also have nearly 30 lakh shares of Noida power.
The listed investment is nearly Rs 220 crore. If you look at the shareholding pattern, promoter holding is nearly 50 percent, there are 382 corporate bodies holding 8.98 percent, there are nearly 29,000 individuals holding 28 percent and so, it is widely spread. The investment value is nearly 11 times and it belongs to RPG Group enterprise.
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