Modern Shares & Stockbrokers - Cash Balance is Less than Market Cap?

Q&A: Questions & Answers Company Q&A
1

Hi,
Was analyzing Modern Shares & Stockbrokers and found the following details

  • Company market cap is 4.54 Crores
  • Dividend Paying for past many years
  • Cash in Company 14.85 Crores

Cash to market cap is very attractive. Any trap in this stock ?

2

Hi,
Please look at break up of Cash&Bank Balance in Annual Report. 65-70% of Cash is FD against MM, Borrowings and Guarantees.

3

This is very very small company. Revenue declined from 45 cr 2005 to 0.95 cr in 2015. Why even you want to look at such small company? I generally avoid companies with market cap < 200 cr.