Dhunseri investments - looks undervalued

(ishandutta2007) #1

A Debt free holding company registered in Kolkata with following portfolio

Here are financials

What caught my attention is a company with 2300 Crores sales and similar net asset is only valued 200 Crore. What’s the catch? What am I missing?

Key trigger :
Market cap to sales ratio = 0.09

Disc: Not invested

(sachit) #2

Read annual report of Dhunseri Petrochem which i think is the subsidiary of Dhunseri Investments. It will give a lot of clarity regarding these figures. I personally think DPTL might be a better bet. Dhunseri Investments is almost like a holding company of a holding company.

(ishandutta2007) #3

I found Dhunseri Petrochem Ltd(NSE:DPL).
Though currently loss making it seems more faily priced with market cap of 340 Crore for sales of 230 Crore.(ie Market cap to sales ratio =1.50)

Yet to dive more into figures.

If you are tracking Dhunseri Petrochem, any idea why it ran into losses after a decade of robust profit growth and why doesn’t the stock refect that, stock hardly doubled in 10 years?

(sachit) #4

Just go through their annual report (Dhunseri Petrochem). It’ll clarify a lot. They sold their petrochem business for a nice profit and now hold a lot of investments.

Kind regards

Sachit Khera

(rajneeshfreedom) #5

Did anyone analyse why Dhunseri Petro sales were almost zero during last financial year??

(Satya Prakash) #6

Check Standalone number on Screener.in.
Or get it from BSE website. Today, result for Dec 2018 came.
Very good results.
EPS 7.6 vs 2.12 YoY. Prev qtr EPS 4.68.

I am talking about Dhunseri Petrochem in reply to @rajneeshfreedom and not about Dhunseri Investment.

Promoters has increased holding in last few quarters even when they already had above 70% stake.
Few details here. Hope it won’t come into spamming. Don’t feel to open new thread to write in great details.

Just checked that General Insurance Corp of India holds 1.28% stake.
West Bengal Industrial Development Corporation Ltd holds 2.61%. Also,
The New India Assurance Company Ltd holds 2.69% in the company.

Disc: Invested