Elpro internation holds 2 hidden assets which can be liquidated anytime.
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PNB Metlife - 12.7% holding. PNB metlife’s networth is 2207 Cr as
on Q3FY17. If we assign 2.5X P/B, we get 2.5X2207 = 5517 Cr. Hence,
0.127 X 5517 = 700 Cr (In FY13, J & K bank sold its 6.1% stake for 190 Cr). But is valued at 250 Cr in book. Hidden value of 450 Cr. -
Elpro estates - 86% holding. It owns 35 acre land in
Pimpri-Chinchwad, Pune with construction (completed and in progress of
10 towers having 12 storey). Though Elpro Intl have a liability of 200
Cr, its real estate assets must be more than 200 Cr. But why this is not
getting converted to free cash flow ?
Mkt cap = 340 Cr but NAV = 700 Cr + real estate future income (unable to calculate as information is not available on unsold part). NAV may be 1000 Cr.
I have not included surge arrester business which is negligible.
Any view on this stock (especially on the real estate part)…