I am trying to identify some cash bargains and came across Hindustan Composites.
I would like to know the following about my understanding of Hindustan Composites as a cash bargain from the valuepickr experts
1). Feedback about the pros and cons listed below
2). Would you consider buying this stock as a cash bargain now or wait further. Why?
a. Business available at below the quoted value of investments held.
b.Investments are liquid.
c.The investment cash was received in 2010 by the business on sale of its land. The company has invested it in marketable securities.
d.Near 52 week lows.
e.Promoter stake has increased.
f.Even though the business is not debt free, the debt can easily be serviced from current investments, cash in hand and inter-corporate deposits.
a.The businessdoesn’tseem to be generating profits if investment income is ignored. But the Cash flow from operations is positive.
b.Dividend Yield is low.
c.The stock price was constantly reducing for the past year. It seems the market had provided it a higher valuation due to the investments in hand and seeing no catalyst for unlocking the value the market is now discounting it below investments.
d.Lack of catalyst for unlocking value.